Thursday was tough and Friday was worse for the bulls as the markets rolled over on worries of higher inflation, more rate hikes and geopolitical tension surrounding Ukraine and Russia. Let’s look at our top stock trades for next week.
Top Stock Trades for Monday No. 1: Exxon Mobil
I’m going to start this list with an energy stock and then talk about commodities. This has been the leading sector of 2022, as well as for the past three, six and 12 months.
To ignore it is foolish, although it’s also being influenced by the headlines (which is never great for traders). With Exxon Mobil (NYSE:XOM), shares gave us a near-perfect dip down to the 10-day moving average.
If it can regain $80, then let’s look for the 61.8% retracement of the range up near $81. Above that and the $82.50 to $83 level is in play. On a push to new highs, $86 is possible.
On the downside, a break of this week’s low puts the 21-day moving average in play.
Top Stock Trades for Tomorrow No. 2: Oil
Speaking more broadly of oil prices — whether that’s crude oil futures (CL) like we have pictured here or the United States Oil ETF (NYSEARCA:USO) — this asset has been in a bull market too.
Unfortunately, it’s also headline driven with the geopolitical tensions, but even before that was an issue, oil had a strong trend.
From here, we are looking at a weekly-up rotation. If oil can maintain momentum, there’s a roadmap to $100, which is roughly where the 161.8% extension comes into play.
On the downside, $88 to $89 has been support, and the 21-day moving average should be too. A break of these marks could put the $85 breakout level back in play.
Top Stock Trades for Tomorrow No. 3: Ford
Ford (NYSE:F) is another one I have been watching and will continue to watch for a buying opportunity.
For now, shares are clinging to the weekly VWAP measure, but as the overall market struggles, Ford stock is too. A bearish reaction to earnings obviously isn’t helping sentiment here.
If the stock breaks to new lows, keep an eye on the $16.50 area. Maybe it breaks a little below that mark or perhaps it finds support a little higher — such as near $16.85, the 161.8% downside extension.
Either way, in this area is where I want to look for a potential dip-buying opportunity. Should we rally from here instead, bulls need a close above the 10-day moving average. That unlocks $19 and potentially higher.
Top Trades for Tomorrow No. 4: Under Armour
Speaking of bearish earnings reactions, we have one here with Under Armour (NYSE:UAA) on Friday.
As of this moment, Under Armour stock is undercutting last month’s low at $17.52. It’s also flirting with a tag of the 2021 low at $17.16, with the weekly VWAP just below that.
On the plus side, there is a little bullish divergence on the RSI reading, but please note: This is meaningless without some type of reversal or rotation in the stock price. Price is always our leading indicator. Other indicators — like the RSI — are just clues to build our evidence.
If it breaks all of these levels and doesn’t bounce, UAA is in no man’s land. It will be a no-touch for me in that instance. Back over $17.52 and bulls can try to ride a reversal in Under Armour and target the 10- and 21-day moving averages.
On the date of publication, Bret Kenwell held a long position in XOM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.