Friday was the icing on the cake. A number of stocks surged higher on the day, with the S&P 500 and Dow Jones climbing more than 1% and the Nasdaq running as high as 2% before the close. The move comes off a less-than-stellar jobs report, as investors’ hopes for further rate cuts fuel stock prices higher. Let’s look at some top stock trades ahead of next week.
Top Stock Trades for Tomorrow #1: Amazon
Click to EnlargeShares of Amazon (NASDAQ:AMZN) are showing a nice lift on Friday, up 2.6%. In fact, other large cap companies are too, with Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) also moving nicely. Interestingly, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is not, which we’ll get to in a moment.
That $1,700 breakout level we were watching held for the most part this week. We’ve quickly seen a $100 rally in AMZN, as the market has been surging over the past few day.
Shares are now running into downtrend resistance and the 20-day moving average. A push through this level could trigger a run to the 50-day. Should it act as resistance, I want to see if the 200-day moving average acts as support. If it does, AMZN will form a higher low, a bullish technical development.
Top Stock Trades for Tomorrow #2: Alphabet
GOOGL on the other hand, hasn’t been acting so well. While it finally took out this week’s highs on Friday, it’s not doing so in convincing fashion. Consider how strong the Nasdaq has been all week, and short of Friday, how pathetic GOOGL stock has been trading.
Now into the gap though and perhaps this one can gain some upside momentum. If downtrend resistance doesn’t knock it back down, I want to see if Alphabet can fill the gap up to $1,100.
Should GOOGL lose Monday’s opening levels near $1,065, then the $1,035-ish lows are back on the table. Shares flirted with these lows all week and ultimately found buyers each time. Below here could get us a dip down to $1,000.
If the markets fade next week, GOOGL may too.
Top Stock Trades for Tomorrow #3: Beyond Meat
One of the market’s biggest fascinations right now is Beyond Meat (NASDAQ:BYND), which is up 36% on better-than-expected earnings. However, don’t be fooled. While this name can continue higher, it’s mainly due to the very low share count currently available for trade as it’s a recent IPO.
Currently floating at new highs, BYND can continue higher if buyers keep pushing it. On a pullback, see if prior channel resistance near $120 can support it.
If not, a pullback to $105 may be in order, which is prior range resistance. Below that and $95 is on the table, with the 38.2% retracement near $93. Further, the upward trending 20-day moving average is just below around $92.
Top Stock Trades for Tomorrow #4: FedEx
How ugly has FedEx (NYSE:FDX) been? Answer: Very.
FedEx was in the news on Friday after it opted not to renew its Express U.S. service with Amazon.
If we’re giving FedEx the “benefit of the doubt” treatment, we can say that it already broke out of downtrend resistance (thin purple line). However, I have FDX in the “prove it” camp instead, because it’s chart has been so dreadful. Therefore in my eyes, shares are still stuck in a downtrend (thick purple line).
The stock has put in a double bottom at $150 and its MACD (blue circle) indicates that bulls are gaining momentum.
Yet FDX just has too many trends going from the upper left to the lower right. Over downtrend resistance gets us to the 20-day. Over that gets us to $170, which I expect to act as resistance. At least on the first test.
If $150 breaks to the downside, FDX is in no man’s land.
Top Stock Trades for Tomorrow #5: Docusign
I covered Docusign’s (NASDAQ:DOCU) earnings plunge, arguing that the selloff seems like an overreaction.
Below key support between $50 and $52, as well as the 61.8% retracement at $47.78, and we said it was possible for DOCU stock to drop into the $45 area. On the plus side, it didn’t have to go quite that low to find buyers. Even better, it reclaimed the 61.8% mark.
So now what?
I would love to see DOCU stock reclaim the $50 mark and its 200-day moving average. If it can, perhaps it can fight back into its prior range and give its 50-day moving average a test. Whether it gets that high or not doesn’t really matter though, because it would be really bullish to see DOCU selloff this hard and quickly reclaim key support.
On the downside, I want to see how Docusign reacts to $44 to $45 should it decline next week. If buyers can’t buoy it, sub-$40 could be in the cards.