It was not a good day for the market on Friday, and it’s a bad way for equities to go out for the week — at the low. It wouldn’t surprise me if we dip into next week’s Fed meeting. Let’s look at a few top stock trades ahead of Monday.
Top Stock Trades for Monday No. 1: Bitcoin
Remember, Bitcoin (BTC-USD) trades 24/7 and will be going this weekend. However, as it wears on, a key level is quickly approaching.
Keep a close eye on the $37,000 to the $37,500 range. There we find last month’s low, as well as channel support. To see this area break and not be reclaimed could open the door down to $35,000, then the 2022 low just under $33,000.
On the upside, note how the 21-day moving average continues to act as resistance. Bulls need this observation to change before a sustainable uptrend can take hold. If it can do that, then the 50-day and the midpoint of the channel are in play — with the latter near $43,500.
Top Stock Trades for Monday No. 2: Tesla
The stock is being rejected by the 200-day but holding the 50-week. However, even more noticeable is the $875 level on the downside and the $900 level on the upside. Despite big moves below and above these marks, respectively, Tesla continues to trade close within this range.
Look for a range break. If the stock can close over $900 and the 200-day, then it may very well launch back up to the 10-day and 50-day. If it cracks $875, then the 50-week is on the table, followed by this week’s low near $822.
Below that could put the $775 to $800 area in play.
Top Stock Trades for Monday No. 3: Palo Alto Networks
One of the relative strength leaders in tech — one of the very few — has been Palo Alto Networks (NASDAQ:PANW).
The stock was giving us an inside week while holding the 50-day and had me looking for a potential weekly-up rotation back over the key $600 level next week.
Not so much anymore.
The stock is cracking lower on the day, technically entering a weekly-down rotation (although not with much force). Typically a short setup, I would rather sell the rallies in weak stocks than short the break in one of the few strong tech stocks.
If this continues lower though, $550 is not out of the question. A real hammering puts $500 in play (and would have me wishing I didn’t call PANW a short). Aggressive shorts can use $570 as their stop-loss.
Back over $570 and this name looks better, but it will need to hold that level and reclaim the 50-day to make up ground.
Top Trades for Monday No. 4: Procter & Gamble
One of the few that continues to work on the long side, Procter & Gamble (NYSE:PG) has been holding up nicely. Here, the daily chart is on the left and the weekly is on the right.
We have an inside week this week, as shares consolidate above the 10-day and 21-day moving averages. If we can get a weekly-up rotation, it could trigger a breakout over $165.
That would have me looking for a potentially longer term move that could put $175 to $180 in play.
On the downside, the stock has to hold $157 in my mind. That’s the 10-week and 21-week moving averages. To lose them means it may lose momentum.
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.