Stocks continue their strong rally from Thursday, jumping on Friday over optimism for a partial trade deal between the U.S. and China. Let’s look at a few top stock trades going into the weekend.
Top Stock Trades for Monday No. 1: Apple (AAPL)
How much more clear could we have been with Apple (NASDAQ:AAPL) stock here on Top Stock Trades?
The stock made a perfect recovery on Oct. 3 — highlighted here — where it broke below, then reclaimed uptrend support and the 20-day moving average. The $215 breakout level held as support, as shares hit a low of $215.13.
We said as long as shares maintain above the 20-day and 50-day moving averages, that AAPL can continue higher. Bursting over all of its prior highs on Friday, Apple can technically run up to channel resistance in the low $240 range before tiring out.
Top Stock Trades for Monday No. 2: Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) has been a lackluster hold lately, as AMD stock has been trending lower since topping out in early August.
Is that run about to end, though?
The $27.50 to $28 level and the 61.8% retracement held as support, while AMD stock is now bursting over downtrend resistance (blue line). Shares are stalling at the 50-day moving average, but should AMD reclaim this mark, a run to $32 could be in the cards. Above $32 and higher than $34 is possible.
On the downside, I want to see the 20-day moving average and the backside of prior downtrend resistance hold as support. A move below puts the October low of $27.43 on the table.
Top Stock Trades for Monday No. 3: Twitter (TWTR)
Twitter (NYSE:TWTR) has a similar setup. Instead of topping out in early August though, TWTR hit its high in early September.
Support near $40 held up for the most part, while shares are pushing over downtrend resistance (blue line). From here, investors need to see this move “stick,” meaning it stays north of $40 and former downtrend resistance. Below $40 support puts the October low on the table.
On the upside, let’s see if TWTR can reclaim the 78.6% retracement and the 50-day moving average at $41.90. Above it puts a run to $43+ on the table.
Top Stock Trades for Monday No. 4: Dollar General (DG)
Dollar General (NYSE:DG) is giving investors a clean breakout on Friday.
After gapping higher in late August, shares continue to put in a series of higher lows. It’s been showing relative strength against the overall market, but continued to find resistance between $161-$162.
That’s an ascending triangle, a bullish technical pattern where rising uptrend support (blue line) continues to push a stock into a static level of resistance (black line). Breaking out over resistance now, that mark needs to turn into support on future pullbacks.
If it does, then bulls can continue to ride DG. Below, and we need to see if DG can reset by holding uptrend support and the 20-day moving average.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL.
