Stocks churned higher for most of Friday’s session, setting the stage for the start of earnings season next week. With that in mind, let’s look at a few top stock trades for Monday.
Top Stock Trades for Monday No. 1: Fastly (FSLY)
Fastly (NYSE:FSLY) stock has been absolutely incredible, rallying from $10.63 at the March low to more than $100 this week.
On the way up, we outlined a couple of key levels, including $75 and $84. These are the 261.8% and the three-times range extensions from the prior range. I also flagged the 361.8% level and the $100 mark as a potential upside target.
After briefly exceeding these marks, however, shares seem to be cooling off a bit.
Now we need to see where support comes into play. Start with the 10-day moving average near $88. Below that puts the 20-day moving average in play, followed by the extensions we highlighted in the chart at $84 and $75.
Above $100, though, and the $102.95 high is in play.
Top Stock Trades for Monday No. 2: Boeing (BA)
Boeing (NYSE:BA) made a nice reversal higher on Friday, as it continues to hold the $168 to $170 area as support.
The problem is, however, that downtrend resistance (blue line) and the 20-day moving average continue to squeeze the stock lower. This has the look of a descending triangle, a bearish technical signal.
That said, watch $168. Below this mark puts the 50-day moving average in play. If that fails, it could put $150 in play, which is the 23.6% retracement.
For bulls to gain any sort of meaningful momentum, the stock must close over the 20-day moving average currently near $184.
Top Stock Trades for Monday No. 3: JPMorgan (JPM)
JPMorgan (NYSE:JPM) and other bank stocks are making a powerful move higher on Friday and ahead earnings next week. The company will report on Tuesday, along with Citigroup (NYSE:C).
The 23.6% retracement held as solid support for the last few weeks. So with JPMorgan’s rally, the stock is reclaiming the 20-day and 50-day moving averages, as well as clearing downtrend resistance.
Now bulls need to see if shares can clear the 38.2% retracement and reclaim $100. Above that puts $110 to $112 in play, along with the 200-day moving average.
Below uptrend support, though, and JPMorgan could see more downside.
Top Stock Trades for Monday No. 4: Citigroup (C)
Like JPMorgan, Citigroup is prepping for earnings.
The stock did a great job holding $50 support and is bouncing off the 50-day moving average. It’s also reclaiming downtrend resistance and the 20-day moving average.
From here, I want to see shares clear the 50% retracement at $56.68, putting $60 to $62 in play. There it will find the 61.8% retracement and 200-day moving average.
Below this month’s low at $49.03, however, and Citigroup could take a tumble. In that event, it put the 23.6% retracement in play at $43.47.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.