Another day, another new all-time high. Who’s surprised at this point, as the leaders keep on vaulting to the upside. With that in mind, let’s look at a few top stock trades as we gear up for next week.
Top Stock Trades for Monday No. 1: Amazon
Ahead of earnings last week, I noted the importance of the 50-week moving average for Amazon (NASDAQ:AMZN). However, the hope was that after consolidating for well over a year, shares would finally break out to the upside.
Instead, the company delivered a rare top- and bottom-line miss, causing the stock to retreat. However, it held where it needed to and has been pushing higher since. Rallying on bad news? That’s even better than rallying on good news!
Not only did the stock successfully hold the 50-week moving average, but it’s now back above the 10-week and 21-week moving averages as well. The stock went weekly- and monthly-up this week thanks to its 6.2% rally over the past three days.
If AMZN stock can now clear $3,550, it could open the door up toward its third-quarter highs near $3,750. Above that, and $3,900 to $4,000 is on the table.
Top Stock Trades for Monday No. 2: Gold (GLD)
Gold continues to trade really well over the past two days. It looked a little sluggish on Friday morning, but held the 200-day moving average and pushed higher.
That caught my attention, particularly after it held the midpoint of the channel.
Now, I want to see if shares can go monthly-up over last month’s high near $1,815. If it can do that, gold could run to its Q3 high at $1,837.50. Above that, and it’s possible the yellow metal pushes up to $1,900 or higher.
On the downside, however, I want to see the 200-day moving average hold as support. The chart here is for the gold futures, but traders can also utilize the SPDR Gold Trust ETF (NYSEARCA:GLD).
Top Stock Trades for Monday No. 3: Pinterest (PINS)
After getting buried relentlessly for what has seemed like months on end, Pinterest (NYSE:PINS) is finally seeing a bid.
The only problem? It’s running right into the declining 10-day moving average. As far as we know, this is an active level of resistance for the stock. If Pinterest can clear this measure, it puts the October low in play near $49.
Above $51.50, and PINS stock can start filling that nasty gap it has from late October.
On the downside, though, watch for a move back below $46. That could put the November low back in play at $43.30.
Top Trades for Monday No. 4: Peloton (PTON)
Shares of Peloton (NASDAQ:PTON) are getting buried on the day, down more than 35%. It’s a painful cherry on top for the bulls that have stuck with this name. Shares were down about 50% before Friday, and are now down about 65% with Friday’s action.
There aren’t a lot of positives and it’s completely reasonable not to chase PTON stock down here. However, seeing a doji candle down here with divergence on the Williams %R reading at least raises an eyebrow (blue line).
If we can get some kind of reversal brewing — an inside-and-up day, a push up through Friday’s high or a break of Friday’s low and a reclaim — Peloton could be enticing.
However, should PTON stock explodes higher, let’s see how it does with the $80 level. I’d expect it to be resistance should it get there. Admittedly, though, that’s a pretty far run. Let’s just look for an oversold opportunity if it presents itself and go from there.
On the date of publication, Bret Kenwell held a long position in PINS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.