It’s been a strong two weeks for stocks. The S&P 500 is virtually flat on Friday. Coming into the session, shares were up in six of the last eight days, with one of those “declines” being a dip of just 0.03%. With that in mind, let’s look at a few top stock trades — starting with the S&P 500.
Top Stock Trades for Monday No. 1: S&P 500 (SPY)
The S&P has made up considerable ground over the past two weeks. As I outlined this morning though, it’s now running right into the 61.8% retracement of this year’s range.
In the chart above, we’re looking at the SPDR S&P 500 ETF (NYSEARCA:SPY).
Additionally, it’s also running into the 21-week moving average. This is a key zone in my opinion, even though the index did a great job pushing over the last few days of through last week’s high and the 200-day moving average.
From here, bulls need to see $445 hold as support. Holding above the 200-day is even better. On the upside, they’ll want to clear $454, opening the door up to the $459 to $460 area. This too will be an important level.
On the downside, we could see $440 again if the SPY starts to break down.
Top Stock Trades for Monday No. 2: GameStop (GME)
GameStop (NYSE:GME) has come surging to life, surely pleasing some of the /Wallstreetbets crowd. In any regard, the stock ran right to our target near $160 — which is why I tend to lay out multiple upside and downside objectives in this column.
Now up nine days in a row, it may be time for GameStop to take a breather. If that’s the case, bulls would love to see it stay above the 21-week moving average, but almost need it to stay above $127 to $130.
That area was resistance in February, but support on Wednesday and Thursday. It’s key. Otherwise, the 50-day could be back in play.
On the upside, if GameStop takes out this week’s high and sustains above it, look for a rally up toward the 200-day and 50-week moving averages, with the weekly VWAP measure just above that.
Top Stock Trades for Monday No. 3: Micron (MU)
Micron (NASDAQ:MU) did not look great earlier in the session, but its bounce into the close really helped save the day. Still, investors are left with a bit of a mixed picture here.
On the upside, Micron continues to struggle with the 200-day moving average. Over the past three days it’s also struggled with the 10-day.
If it can go weekly-up over $79.89 — call it $80 — it could put the declining 50-day in play. On the downside, $75 has proven to be critical. A break of that could open the door to the gap-fill level near $73.50.
Below $73.50 and $68 to $70 is on the table.
Top Trades for Monday No. 4: Tesla (TSLA)
Tesla (NASDAQ:TSLA) is getting tight on the daily chart, with Friday’s action setting us up for potential back-to-back inside days.
So far, it’s struggling to push through the 61.8% retracement but is sitting comfortably above the 50% retracement, as well as the 21-week moving average and weekly VWAP measure.
It’s been an impressive run. An inside-and-up rotation over Friday’s high could put the $1,035 to $1,040 area in play, followed by a potential run to the $1,100 to $1,115 area.
On the downside, an inside-and-down rotation could put $970 to $975 in play, followed by the 10-day moving average and the $940 to $950 zone. Keep an open mind!
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