It’s been a strong two weeks for stocks. The S&P 500 is virtually flat on Friday. Coming into the session, shares were up in six of the last eight days, with one of those “declines” being a dip of just 0.03%. With that in mind, let’s look at a few top stock trades — starting with the S&P 500.
Top Stock Trades for Monday No. 1: S&P 500 (SPY)
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The S&P has made up considerable ground over the past two weeks. As I outlined this morning though, it’s now running right into the 61.8% retracement of this year’s range.
In the chart above, we’re looking at the SPDR S&P 500 ETF (NYSEARCA:SPY).
Additionally, it’s also running into the 21-week moving average. This is a key zone in my opinion, even though the index did a great job pushing over the last few days of through last week’s high and the 200-day moving average.
From here, bulls need to see $445 hold as support. Holding above the 200-day is even better. On the upside, they’ll want to clear $454, opening the door up to the $459 to $460 area. This too will be an important level.
On the downside, we could see $440 again if the SPY starts to break down.
Top Stock Trades for Monday No. 2: GameStop (GME)
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GameStop (NYSE:GME) has come surging to life, surely pleasing some of the /Wallstreetbets crowd. In any regard, the stock ran right to our target near $160 — which is why I tend to lay out multiple upside and downside objectives in this column.
Now up nine days in a row, it may be time for GameStop to take a breather. If that’s the case, bulls would love to see it stay above the 21-week moving average, but almost need it to stay above $127 to $130.
That area was resistance in February, but support on Wednesday and Thursday. It’s key. Otherwise, the 50-day could be back in play.
On the upside, if GameStop takes out this week’s high and sustains above it, look for a rally up toward the 200-day and 50-week moving averages, with the weekly VWAP measure just above that.
Top Stock Trades for Monday No. 3: Micron (MU)
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Micron (NASDAQ:MU) did not look great earlier in the session, but its bounce into the close really helped save the day. Still, investors are left with a bit of a mixed picture here.
On the upside, Micron continues to struggle with the 200-day moving average. Over the past three days it’s also struggled with the 10-day.
If it can go weekly-up over $79.89 — call it $80 — it could put the declining 50-day in play. On the downside, $75 has proven to be critical. A break of that could open the door to the gap-fill level near $73.50.
Below $73.50 and $68 to $70 is on the table.
Top Trades for Monday No. 4: Tesla (TSLA)
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Tesla (NASDAQ:TSLA) is getting tight on the daily chart, with Friday’s action setting us up for potential back-to-back inside days.
So far, it’s struggling to push through the 61.8% retracement but is sitting comfortably above the 50% retracement, as well as the 21-week moving average and weekly VWAP measure.
It’s been an impressive run. An inside-and-up rotation over Friday’s high could put the $1,035 to $1,040 area in play, followed by a potential run to the $1,100 to $1,115 area.
On the downside, an inside-and-down rotation could put $970 to $975 in play, followed by the 10-day moving average and the $940 to $950 zone. Keep an open mind!
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.
