The S&P 500 closed lower for the sixth-straight week, but traded well on Friday, up 2.4%. With that in mind, let’s look at our top stock trades for next week.
Top Stock Trades for Monday No. 1: S&P 500 (SPY)
The SPDR S&P 500 ETF (NYSEARCA:SPY) was due for a bounce at some point. Going on six straight weekly declines — despite being up on Friday — is just too much downside, even though there are a bevy of negatives.
We got a strong close on Thursday and were looking for a nice boost today and we got it. Bulls sort of fumbled the ball late in the session but recovered a bulk of their miscues by the close.
So, what now?
As you can see on the chart here, the $405 area is tricky. There we have last week’s low and this week’s resistance. It also has active resistance in the form of the 10-day moving average.
If we can clear this area, perhaps the $410 to $412 zone could be on the table, followed by a rally all the way up to the 21-day moving average. That all said, keep in mind what direction the trend has been in — down.
If we move lower again, watch today’s low at $395.61. A break of that — which is roughly Thursday’s high, too — then $392 is on the table. Below $389, and the lows are back in play near $385.
Top Stock Trades for Monday No. 2: Costco (COST)
Costco (NASDAQ:COST) has traded lower for five-straight weeks now but is giving us a doji week as it rests on the 50-week moving average.
If Costco stock can go weekly-up over $510.63, then bulls could enjoy more upside. Keep in mind, though, the 200-day moving average is near this level, so it’s an important area for the stock to clear and stay above.
If it can do that, it puts the $535 area in play, which is the declining 10-week and 21-week moving averages. Above that puts $545 in play, which is the 50% retracement.
On the downside, however, keep an eye on $490. If Costco tips lower, we could be looking at a retest of the lows near $480.
Top Stock Trades for Monday No. 3: Affirm Holdings (AFRM)
Moving on from some of the stronger names out there, Affirm Holdings (NASDAQ:AFRM) has been crushed lately — aside from Friday’s powerful post-earnings jump on solid results.
The stock is gapping up into prior support near $26 and the 10-day moving average. If it can’t reclaim this area, then this month’s low remains vulnerable.
However, if the stock can power higher from here, bulls can look to the $32.50 area, then the $37.50 zone. In between these two measures sits the 50-day and 10-week moving averages and they could be resistance.
Top Trades for Monday No. 4: Aurora Cannabis (ACB)
Aurora Cannabis (NASDAQ:ACB) is also rallied on earnings on Friday. It too has overhead resistance right above it, in the form of $2.90 and the 10-day.
If it can push through this area, keep an eye out for the 21-day, which isn’t too far above this area.
However, if Aurora can really gain some steam, $3.40 is in play, followed by $3.65. These two levels are the 50-day and 50% retracement, and the 61.8% retracement and daily VWAP measure, respectively.
On the downside, though, failure to reclaim and/or hold above $2.90 keeps the May low in play.
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.