Despite a jobs report on Friday we didn’t get too many fireworks in the indices, although the S&P 500 and Dow Jones both hit new all-time highs. Let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Novavax
After a couple of strong rallies, Novavax (NASDAQ:NVAX) is getting slugged on the day, down about 20% on Friday.
The stock had finally pushed through the $229 level, although faded hard from the 61.8% retracement on Thursday. That was followed by today’s large gap-down action below $200.
For now, the 50-day moving average is holding as support. However, I can’t help but think that NVAX would look more attractive if it were to dip down to the 200-day moving average and $170 to $180 support area.
A break of that level could put the $150 mark on the table. Back above $200 and Friday’s high will allow Novavax to begin filling this massive gap back up toward $227.
Top Stock Trades for Monday No. 2: Nvidia
Nvidia (NASDAQ:NVDA) endured a short yet painful pullback in July, but is right back up toward its highs near $209.
From here, I want to see the $195 to $200 area act as support, as well as the 10-day moving average. As long as it remains above the 21-day moving average, it’s okay, but if Nvidia can hold above its short-term measures, the stock will look even healthier.
On the upside, a move over $209 opens the door up to the $225 area, where we find the 161.8% extension of the current range.
On the downside, a break of the $192 area could put the 50-day moving average in play. Below the 50-day and a retest $180 may be in play. That was a major breakout area in June and held as support in July.
Top Stock Trades for Monday No. 3: Plug Power
Earnings weren’t enough to get Plug Power (NASDAQ:PLUG) moving in the right direction. On Thursday, the stock came within pennies of retesting the July low. Further, shares rallied as much as 10.4% on the day, but have since given up all of those gains.
Now about flat on the session and bulls have to be careful with this one.
If Plug Power breaks the $24.75 area and can’t reclaim it, that could open the door down to $20, which was support in May.
The stock tried to reclaim its short-term moving averages, but was ultimately rejected by the $28.63 level. Above Friday’s high puts the 50-day moving average and $30 level in play. Above that puts the 200-day moving average on the table, but until it takes out Friday’s high, I’d be careful.
Top Trades for Monday No. 4: Gold
Gold is gaining quite a bit of attention, whether it’s the futures market or the SPDR Gold Trust ETF (NYSEARCA:GLD). Both assets are down about 2.5% so far on the day.
The GLD is a bit more accessible for investors, so I will stick with that for the weekly chart. The GLD continues to make a series of lower highs and has done so since the summer of 2020.
With this week’s action, the GLD is getting rejected from the $170 to $172 area, as well as the 50-week moving average. It’s breaking below the 21-week moving average and is now failing to hold the 21-month moving average.
It may give us a look-below of the $164 level, which is the June low, as the GLD is already going monthly-down below the July low. However, if we get a close below $164, we could start to see an acceleration in the downside.
Specifically, it could put the $155 to $157 area on the table. A look below $164 and a reclaim of this level could give bulls a low-risk long, but that remains to be seen. For now, let’s keep an eye on this area.
On the date of publication, Bret Kenwell held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.