The S&P 500 closed lower for the sixth-straight week, but traded well on Friday, up 2.4%. With that in mind, let’s look at our top stock trades for next week.
Top Stock Trades for Monday No. 1: S&P 500 (SPY)
The SPDR S&P 500 ETF (NYSEARCA:SPY) was due for a bounce at some point. Going on six straight weekly declines — despite being up on Friday — is just too much downside, even though there are a bevy of negatives.
We got a strong close on Thursday and were looking for a nice boost today and we got it. Bulls sort of fumbled the ball late in the session but recovered a bulk of their miscues by the close.
So, what now?
As you can see on the chart here, the $405 area is tricky. There we have last week’s low and this week’s resistance. It also has active resistance in the form of the 10-day moving average.
If we can clear this area, perhaps the $410 to $412 zone could be on the table, followed by a rally all the way up to the 21-day moving average. That all said, keep in mind what direction the trend has been in — down.
If we move lower again, watch today’s low at $395.61. A break of that — which is roughly Thursday’s high, too — then $392 is on the table. Below $389, and the lows are back in play near $385.
Top Stock Trades for Monday No. 2: Costco (COST)
Costco (NASDAQ:COST) has traded lower for five-straight weeks now but is giving us a doji week as it rests on the 50-week moving average.
If Costco stock can go weekly-up over $510.63, then bulls could enjoy more upside. Keep in mind, though, the 200-day moving average is near this level, so it’s an important area for the stock to clear and stay above.
If it can do that, it puts the $535 area in play, which is the declining 10-week and 21-week moving averages. Above that puts $545 in play, which is the 50% retracement.
On the downside, however, keep an eye on $490. If Costco tips lower, we could be looking at a retest of the lows near $480.
Top Stock Trades for Monday No. 3: Affirm Holdings (AFRM)
Moving on from some of the stronger names out there, Affirm Holdings (NASDAQ:AFRM) has been crushed lately — aside from Friday’s powerful post-earnings jump on solid results.
The stock is gapping up into prior support near $26 and the 10-day moving average. If it can’t reclaim this area, then this month’s low remains vulnerable.
However, if the stock can power higher from here, bulls can look to the $32.50 area, then the $37.50 zone. In between these two measures sits the 50-day and 10-week moving averages and they could be resistance.
Top Trades for Monday No. 4: Aurora Cannabis (ACB)
Aurora Cannabis (NASDAQ:ACB) is also rallied on earnings on Friday. It too has overhead resistance right above it, in the form of $2.90 and the 10-day.
If it can push through this area, keep an eye out for the 21-day, which isn’t too far above this area.
However, if Aurora can really gain some steam, $3.40 is in play, followed by $3.65. These two levels are the 50-day and 50% retracement, and the 61.8% retracement and daily VWAP measure, respectively.
On the downside, though, failure to reclaim and/or hold above $2.90 keeps the May low in play.
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