The S&P 500 is working on its fifth straight daily decline, although it’s down just 1.7% from the highs. Let’s look at a few top stock trades as we turn our attention to next week.
Top Stock Trades for Monday No. 1: Novavax
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Novavax (NASDAQ:NVAX) was trading really well earlier this week, breaking out over resistance and pushing to its highest level in several months. The last three days have been a little different, though.
Shares have fallen 13% from the high earlier this week, with the stock down over 6% today. The move thrust NVAX below the 10-day moving average and down into the 21-day. Aggressive bulls may consider buying today’s dip and looking for support from the 21-day.
If that fails, trades will need some discipline. Unless it reclaims the 21-day, NVAX could be heading down to the $220 breakout area and the 50-day moving average.
On the upside, let’s see if Novavax can reclaim the $250 level. Above that puts the recent highs in play near $278. Above that puts $300-plus on the table.
Top Stock Trades for Monday No. 2: FuelCell Energy
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FuelCell Energy (NASDAQ:FCEL) shares are breaking to new 2021 lows. Now below last month’s low and all of its short-term moving averages, this one is a no-touch for me. For me, it’s not a short either, with shares trading in the single digits.
However, if FCEL can reclaim the $5.70 level, bulls could make a case to be long against whatever low the stock ends up putting in on this dip.
Back above $5.70 and FuelCell will need to reclaim the 10-day and 21-day moving averages. Otherwise, $5 or lower is possible.
Top Stock Trades for Monday No. 3: Kroger
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Kroger (NYSE:KR) shares are under pressure despite reporting better-than-expected earnings.
Shares may be down 7.5% on the day, but on the plus side, Kroger not only bounced hard from the 50-day moving average but is trying to hold above the $43 mark.
That’s roughly the high from earlier this year.
Aggressive bulls can be long KR over $43 with a stop just below today’s low. More conservative bulls will likely wait to buy a potential dip down to the 50-day moving average.
On the upside, look for a move back up to Friday’s high, then over $45. Above $45 and the 10-day and 21-day moving averages will be the next obstacles. A close below Friday’s low could put $40 and the 21-week moving average in play.
Top Stock Trades for Monday No. 4: Dave & Buster’s
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Dave & Buster’s (NASDAQ:PLAY) stock is up 1% on the day, which is quite disappointing given that the stock was up almost 16% at one point earlier in the session.
The move comes after the company reported earnings and the fade came from downtrend resistance (blue line) and the $40 level. I already had these levels drawn in, which in my mind, gives them extra weight — in other words, there was no bias coming into the session.
Now the stock needs to hold its 10-day, 21-day and 50-day moving averages. A break below puts this month’s low in play, near $34. If PLAY stock loses this level, the August low just below $31 could be on deck.
On the upside, let’s see if the stock can clear the 200-day moving average. Above puts $40 back on the table.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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.
