The stock market caught a nice rally on Friday, sending it higher into the weekend as investors prep for another busy week of earnings. With that in mind, let’s look at a few top stock trades for Monday.
Top Stock Trades for Monday No. 1: Intel (INTC)
Shares of Intel (NASDAQ:INTC) were getting buried after the close on Thursday. That’s why I said by the close of trading on Friday, Intel still had a chance to hold a few key levels.
That’s exactly what it did.
After opening near $56.20, shares began a slow but steady rally, as Intel erased most its losses ahead of the close. That means the stock held the $56 level, as well as the 50% retracement for the 2020 range.
Now it contends with the 61.8% retracement at $59.28. Above that puts $62 in play, the April high. Above that and INTC can begin filling into the gap, putting $64 on the table.
Top Stock Trades for Monday No. 2: Facebook (FB)
Facebook (NASDAQ:FB) is gearing up to report earnings next week and the stock has plenty of momentum ahead of the report. Earlier this week, the stock reclaimed the 50-day moving average following a strong earnings report from Snap (NYSE:SNAP).
If the stock continues to run or pops after earnings, I want to see shares close above the $192.50 area. If it can do so, it puts Facebook above the 61.8% retracement and 200-day moving average.
Over that area and $200-plus is in play, which opens up the door for a possible gap fill between $204 and $210.
On the downside, bulls will want to see Facebook stock hold the 50% retracement near $180. Below that puts the 50-day moving average back in play, with the 38.2% retracement at $170.37.
Top Stock Trades for Monday No. 3: Wayfair (W)
The next two stocks tend to be a bit more volatile and for that reason, they are certainly not for every trader. But their big moves on Friday brought them to our attention. For instance, Wayfair (NYSE:W) is up 17% so far on the day.
Last week, Wayfair closed over the 200-week moving average and stopped just short of breaking out over downtrend resistance (blue line). Apparently, that performance was being saved for this week.
Amid this week’s massive breakout — triggering a 36% rally — W stock reclaimed the 50-week moving average as well. Should shares continue higher, $150 is the upside target. On a pullback, I want to see if the 50-week moving average holds as support.
Top Trades for Monday No. 4: Overstock (OSTK)
Overstock (NASDAQ:OSTK) caught a huge move on Friday too, rallying 30% at one point. That allowed the stock to reclaim the $9.50 area.
The rally puts the 200-day moving average in play at $10.95, followed by $12 as the next upside target. Above $12 and the $14.50 to $15 area is another possible upside target for this volatile stock.
A move back below $9.50 puts $8 on the table, followed by 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, he did not hold a position in any of the aforementioned securities.