Following a robust three-day rally, it was a tough finish to the week for bulls. Now heading into a three-day weekend, let’s look at a few top stock trades for the holiday-shortened trading week.
Top Stock Trades for Tuesday No. 1: JPMorgan (JPM)
JPMorgan (NYSE:JPM) is set to close one of its worst one-day post-earnings reactions. With the dip, the stock is knifing through every major daily moving average on the chart.
It’s also cutting through a few notable weekly moving averages as well.
If it continues lower, let’s see if JPMorgan can find its footing near channel support. Below this level could put the December low in play at $151.84.
On the upside, though, be careful of all of the moving averages overhead. On a bounce, see if JPMorgan can reclaim these marks, otherwise, it may turn into a short setup.
Top Stock Trades for Tuesday No. 2: Lucid Motors (LCID)
Lucid Motors (NASDAQ:LCID) will be on close watch for a weekly-down rotation next week.
The stock has faded hard from this week’s high and now sits just above Monday’s low at $40.43. Next week, traders will be watching this level to see if it fails.
If it does, the 10-week and 21-day moving averages are on deck. However, if they fail as support and Lucid loses the $40 level, we could see another move back down to $35 and the 21-week moving average.
On the upside, however, let’s see if Lucid can push back through the 50-day.
Top Stock Trades for Tuesday No. 3: GameStop (GME)
I have been very cautious on GameStop (NYSE:GME) ever since the stock broke below $159. Once that level failed as support, it became resistance while GameStop struggled to reclaim its daily moving averages.
Now it’s breaking to new lows as it failed to hold the fourth-quarter low as support at $129.50. From here, one has to wonder if the $100 level is now in play.
At this point, the stock is broken and I don’t want much to do with it for now. The one hope it has left is the 21-month moving average.
If this area holds, look for a rebound back to the Q4 low. However, don’t be surprised if it’s resistance. Above that level, and the 10-day moving average puts the declining 21-day on deck.
Top Trades for Tuesday No. 4: Union Pacific (UNP)
We have been watching Union Pacific (NYSE:UNP) all week and it gave us a pretty sweet little day trade this morning.
The stock is now sitting near the low of the week, but it’s also on the 50-day and 10-week moving averages and uptrend support (blue line).
If this zone fails as support, it may usher in more selling pressure. However, this stock was a solid performer, so if it can get some kind of reversal brewing or rally from here, it puts the $249 level in play.
Above $250, and the $254 to $255 area may be on deck. Early next week, I’d love to see some kind of undercut of this week’s low followed by a quick reversal, but let’s not jump to an assumption or build any preconceived biases.
Let the charts do the work.
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.