5 Top Stock Trades for Monday: AAPL, XOM, TSLA, AAL, WDC

Daily Trade

Friday had plenty of big movers for us to pick from. That said, let’s look at a few top stock trades for next week. 

Top Stock Trades for Monday No. 1: Apple (AAPL)

Shares of Apple (NASDAQ:AAPL) are struggling to rally on Friday, despite beating on earnings. Keep in mind, the overall market was under pressure too, while Apple is up big from the March lows. 

All things considered, Friday’s performance wasn’t that bad. From here, though, Apple rests at an interesting spot. 

Shares sit on steep uptrend support (blue line) with the 10-day moving average not far below, at $283. A move below opens the stock up to a decline to the $270 level. There AAPL will find its 50-day moving average and 50% retracement. 

It would be encouraging to see this level act as support. If it doesn’t, however, the 200-day moving average may be the next stop.

On the upside, Apple needs to take out the $300 to $305 zone. 

Top Stock Trades for Monday No. 2: Exxon Mobil (XOM)

Exxon Mobil (NYSE:XOM) is also in retreat on Friday, but fell much harder than Apple — ending the day down more than 7% after a surprise Q1 loss. Like Apple, Exxon shares have an important level coming up. 

Near $43, XOM stock has its 50-day moving average and uptrend support mark (blue line). If that level holds, Exxon may rebound higher and retest recent resistance near $47.50. Above resistance and the 50% retracement near $50.25 is possible. 

On the downside, though, a drop to the 23.6% retracement at $39.61 may be on the table should support give way. 

Keep in mind, oil may be a driving force of Exxon’s stock price.

Top Stock Trades for Monday No. 3: Tesla (TSLA)

Tesla (NASDAQ:TSLA) shares took it on the chin on Friday, a day after a painful post-earnings reversal. This time, the selling pressure came from a questionable string of tweets from CEO Elon Musk. 

In any regard, the stock is seeing a solid bounce off uptrend support (blue line), despite the heavy decline. If TSLA can hold $700, see if the stock can reclaim the 10-day moving average and push up to $800. 

On the downside, a move back below $700 and uptrend support puts the 50% retracement in play. Below that and Tesla may visit its 50-day moving average at $632.  

Top Stock Trades for Monday No. 4: American Airlines (AAL)

American Airlines (NASDAQ:AAL) took a dive on Friday, falling more than 11%. As a result, shares continue to look unhealthy. 

Shares are putting in a series of lower highs, a bearish technical development highlighted on the chart with purple arrows. A move below $10 puts the April low of $9.09 in play. 

On the upside, bulls need to see AAL end its streak of lower highs. To do so, it must get to $12.90 or higher. It would also be beneficial to see American Air close over its 50-day moving average. Right now, this chart is not enticing from the long side. 

Top Trades for Tomorrow No. 5: Western Digital (WDC)

As is the theme today, Western Digital (NASDAQ:WDC) is also taking it on the chin — down more than 12%. However, it’s seeing a decent bounce off the lows, reclaiming the $40 level. 

Above $37.50 and technically speaking, Western Digital is okay. That said, it has a lot of overhead resistance. That includes the 10-day, 20-day and 50-day moving averages, the 38.2% and 50% retracements and range resistance between $47 and $48. 

If WDC can clear $50, it can fill the gap up to $52.50 and possibly run to the 200-day moving average. But man, the stock needs to do a lot in order to get there. Below $37.50 and it could fill a different gap down toward $33.80. 

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he was long AAPL.

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