We had the jobs report before the open, and despite it coming in ahead of economists’ expectations, it wasn’t enough to lift the market. We’ll touch on the S&P 500 as part of our top stock trades for next week.
Note: This will be the last Top Stock Trades column for a bit. Thank you to everyone who have been readers over the years. Discussing technical analysis and different timeframes has been a true pleasure. Now mind your risk and trade ‘em well!
Top Stock Trades for Monday No. 1: S&P 500 ETF
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I look at the SPDR S&P 500 ETF (NYSEARCA:SPY) everyday. We had a powerful three-day burst of 80%-plus upside volume last week, setting a bullish tone coming into this week. So far though, it’s been a choppy consolidation period.
That’s as the S&P trades into a prior support zone — which failed last month — and is holding above the 10-day and 21-day moving averages. Bulls want to see the SPY hold above $407 and the 10-day moving average.
However, they need to see the SPY hold above $405. If it loses $405, it loses momentum and puts $400 or lower back in play.
If the SPY can hold up, next week’s focus will be on $417.50, which is roughly this week’s high. Above that (and thus the 10-week moving average) and bulls could be looking at a push to the $421 level, followed by the 50-day moving average.
Top Stock Trades for Monday No. 2: Apple
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Apple (NASDAQ:AAPL) was trading quite well this week, holding above the 10-day and 21-day moving averages. It even reclaimed the vital $150 level, closing above it on Thursday.
Friday was a different story. The stock fell roughly 4%, breaking back below its short-term moving averages. On the plus side, it’s holding that $144-and-change area. I would like to see a bit more of a catalyst than that, though.
From here, bulls want to see Apple reclaim the 10-day and 21-day and preferably clear Friday’s high near $148.
On the downside, a break and close below $144 opens the door down to the $136 to $138 area, where Apple stock hammered out a nice low last month. A test of this area keeps the 2022 low in play, near $133.
Top Stock Trades for Monday No. 3: Lululemon
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Lululemon Athletica (NASDAQ:LULU) delivered a beat-and-raise quarter, but the stock is down slightly on the day. On the plus side, it’s holding its short-term moving averages and hit its highest level in several weeks.
If it can hold above $300 and clear $315, Lululemon stock could power up to the $330 to $335 area. There it finds the 50% retracement and 50-day moving average. Above that opens up significantly more upside.
On the downside, a break of the post-earnings low, as well as the 10-day and 21-day moving averages puts the key $285 level in play. Below that and the $265 gap-fill level is vulnerable.
Top Trades for Monday No. 4: Micron
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Micron (NASDAQ:MU) looked like it was ready to join Advanced Micro Devices (NASDAQ:AMD) with a powerful breakout, but couldn’t get going over $75. That was resistance in back-to-back sessions and marks a key resistance point on the chart.
With today’s tumble, Micron is breaking below too many key moving averages. Now we have to see how it sets up again. Can it reclaim Friday’s high and these key moving averages, putting $75 back in play?
If not, it may have a date with range support down near $65 to $66. Otherwise, it’s caught in the middle of the range and is too much of a coin flip at current levels.
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.
