As the markets continue to chop around all-time highs — leaving both bulls and bears believing they are “in the lead” — I wanted to veer from our typical top stock trades routine and look at some potential bargain-bin Cyber Monday stocks to buy. These may not be the typical quick-trade candidates, but longer term swings so long as they do not break down too much further from current levels. Let’s get started.
Cyber Monday Stocks to Buy No. 1: Roku (ROKU)
Roku (NASDAQ:ROKU) is the first on our list, with shares down around 50% from the highs — more than any other stock on this list. Nonetheless, you will notice in the disclosure that I am long a majority of these stocks, and I believe in their long-term futures.
I am a trader first and an investor second, but when I see high-quality stocks — “quality” being the key word — on a 40% to 50% discount, I like to begin accumulating them for long-term holds.
I discussed this strategy once in a lengthy YouTube video.
In any regard, we’re in that stage with many of these growth companies. Here is a weekly chart of Roku, which is trying to find its footing in the low-$230s.
Surprisingly, Roku finished higher last week, giving us the potential for a weekly-up rotation over $238.27.
In the short-term that could put the $250 level in play, followed by the gap-fill level and the 21-month moving average near $270. Above that, and the $290 to $300 zone is on the table.
A sustained move below the $223 low, and we could see $200 next. However, after such a beating, the risk/reward is shifting toward the bulls’ favor.
Cyber Monday Stocks to Buy No. 2: PayPal (PYPL)
PayPal (NASDAQ:PYPL) is not down as much as Roku, but it’s still about 40% off the highs. Shares are trying to hammer out a bottom down here, but it’s not clear if that will be the case.
Now, check out Monday’s action. Shares undercut the prior week’s low near $184, then reversed higher. It did so with some bullish divergence on the charts, too.
From here, let’s see if PayPal can clear $293.90, putting $200-plus back in play.
What we don’t want to see is a break below this week’s low and sustained move lower. That could put $175 back on the table.
Cyber Monday Stocks to Buy No. 3: Twilio (TWLO)
Twilio (NYSE:TWLO) has some life, putting in its third-straight daily gain. Shares are up more than 10% from last week’s low, and are going weekly-up over last week’s high.
That’s a great start, but we need more.
Back over $300 would do a lot of good for bulls this week. That puts Twilio back above the 10-day and 21-day moving averages, as well as the 21-month moving average.
If we get that, then Twilio could see an additional push to the 10-month and 50-day moving averages, followed later by the 200-day moving average.
On the downside, however, a break of $275 and the November low really deals this one a tough blow and will likely stop out a lot of longs.
Cyber Monday Stocks No. 4: Visa (V)
Last but not least is a high-quality company, but one that’s been caught in a landslide lately: Visa (NYSE:V).
Shares are trying to hammer out a bottom in the $190 to $200 range, but so far, it’s struggling to gain upside traction.
If it can regain $200, I think we need to start talking about the $205 to $208 area, where Visa faces plenty of prior moving averages of various timeframes. The monthly VWAP measure is also there.
Above $208 puts $211.66 in play, the gap-fill from earlier this month. Those are the “immediate upside levels” if bulls gain some traction.
On the downside, though, a break and close below $192 could put $180 in play.
On the date of publication, Bret Kenwell held a long position in ROKU, TWLO, PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.