The Dow Jones Industrial Average and S&P 500 hit another new all-time high on Friday, as the dog days of summer continue to result in a slow grind higher. They always say, “never short a dull market,” and it makes sense why. With that in mind, let’s look at some top stock trades going into the weekend.
Top Stock Trades for Monday No. 1: Apple (AAPL)
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Apple (NASDAQ:AAPL) rallied into earnings, but still failed to gain any meaningful upside traction despite stellar results. At least it’s better than an outright selloff like saw after the last two solid reports.
In any regard, shares are doing a good job consolidating near the highs. That’s likely one thing keeping all three major indices near the highs.
After a nice rally on Thursday, shares are trading just below resistance, near $150. If the stock breaks over $150, it puts the 161.8% extension in play near $160. That would be a really solid setup if it comes to fruition.
On the downside, though, see if the 10-day and 21-day moving averages act as support. Below that puts the prior all-time high near $145 on the table. If this area fails as support, the 50-day moving average could be on the table.
Top Stock Trades for Monday No. 2: Airbnb (ABNB)
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Bulls were hoping for more with Airbnb (NASDAQ:ABNB) on earnings, but so far, they’re not getting what they hoped for.
Shares are down slightly on the day, but given the magnitude of Airbnb’s trading range, we can essentially consider Friday’s action unchanged so far.
The day-one high from the IPO at $151.50 continues to be relevant. At the moment, it’s serving as resistance, while the 10-day and 50-day moving averages are acting as support.
As traders, we need something to break — and eventually it will.
If ABNB stock loses its major moving averages as support and its post-earnings low (which will be Friday’s low, currently at $144.51), then it could put the double-bottom low near $130 on the table.
On a break above $151.50 and the Friday high, look to see if ABNB stock can give us a monthly-up rotation by clearing $157.50. Above that could put the 50% retracement in play, conveniently located near $175. Above that, and the 61.8% retracement may be on the table.
Top Stock Trades for Monday No. 3: Rocket Companies (RKT)
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As for Rocket Companies (NYSE:RKT), the stock is enjoying a nice post-earnings response. Shares jumped more than 10% on the day. However, a key area looms.
As Rocket trades higher, the prior support near $19.30 to $19.50 is quickly coming into play. If it’s resistance, we need to see the 50-day moving average hold as support. If RKT stock loses both measures, the 10-day and gap-fill level at $17.74 could be next.
However, should RKT stock clear $19.50, perhaps the 200-day and 50-week moving averages could be reached. Above that puts the $22.50 area in play — the high from June.
Top Trades for Monday No. 4: SoFi Technologies (SOFI)
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SoFi Technologies (NASDAQ:SOFI) was full of hope and promise and then dealt bulls a painful blow. Earlier this month, we got a near-perfect bounce off a solid demand zone at $15.
That sent the stock up to $17.50 ahead of earnings, a solid 16% rally in just a few trading sessions. After earnings, though, shares are getting smacked right back down to the $15 area.
That puts the stock in a precarious position, because support needs to hold. If it fails, the stock could retest the May low at $14.14, followed by the top side of prior downtrend resistance (blue line).
On the upside, SOFI stock needs to reclaim its 10-day and 21-day moving averages, putting the gap-fill level at $16.74 in play.
On the date of publication, Bret Kenwell held a long position in SOFI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
