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4 best stock trades for Monday: The Dow, TSLA, ROST, FL


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Stocks hit fresh 2022 lows in Friday’s session as the S&P500 earned their seventh straight weekly loss and the Dow Jones Industrial Average recorded its eighth consecutive weekly decline. With that in mind, let’s start with the latter for our top stock trades.

Top Monday Stock Trades #1: Dow Jones ETF (DIA)

Click to enlarge

Source: Chart courtesy of TrendSpider

As you can see from the graph here, the SPDR Dow Jones Industrial Average ETF (NYSEARC:IAD) is down for its eighth consecutive week.

On the upside, I have the $325-$328 area as a key. This was the former support from the start of the year and has now failed, while the top of the zone marks the two-week high. Just above is the descending 10-week moving average.

At some point, yes, I expect a rebound. Even then, bulls will need to exercise caution on rallies – remember, this is still a downtrend until proven otherwise.

Eventually we’ll get out of this mess, but it seems too early to call it down. That said, if we get more downside in the days or weeks ahead, keep an eye out for the $292-$300 area. It includes the rising 200-week moving average, the 38.2% retracement and the pre-Covid highs.

Top Monday Stock Trades #2: Tesla (TSLA)

Weekly chart for TSLA
Click to enlarge

Source: Chart courtesy of TrendSpider

You’re here (NASDAQ:TSLA) was beaten on Friday and fell 14% on the week. This is Tesla’s fourth straight weekly decline, with shares now down nearly 35% over the period.

The move sent the stock to new lows in 2022, but the bulls are now looking for support. On the downside, keep an eye out for the $600 level and then the $540-$550 area. It was a key support area in 2021.

Below that opens the door to the psychologically relevant $500 level, which is also a major breakout.

On the other hand, it is simple. Tesla stock needs to recoup $700.

Best Stock Trades for Monday #3: Ross Stores (ROST)

Weekly chart for ROST
Click to enlarge

Source: Chart courtesy of TrendSpider

Ross Stores (NASDAQ:ROST) is buried on earnings. On the chart, you might notice how important its retracement levels have been, especially the 38.2% and 61.8% retracements.

It crossed the latter this week, as well as the 100-week moving average and the 78.6% retracement. Unless it can recover the latter – meaning a move above $73 – then shares of Ross Stores are hard to buy from a technical analysis standpoint.

On the downside, we could see $55 to $60 if the selling pressure does not ease. Anyway, I’d rather go for some of the high quality retail stocks if they recover past support levels than jump into the ROST stock right now, which is in no man’s land below $73.

Top trades for Monday No. 4: Foot Locker (FL)

Top stock trades for FL
Click to enlarge

Source: Chart courtesy of TrendSpider

Foot locker (NYSE:Florida) was one of the few surprising winners of the day, especially given how the stock has traded this year.

However, the stock has done a tremendous job maintaining the $28 level, which it also did in the second quarter of 2020.

I want to see how it goes with the 10-week moving average, a metric it’s struggling with right now. If he can erase it and eliminate this week’s high, keep an eye out for $36, which comes into play near the 61.8% retracement and the falling 21-week moving average.

Above that opens the door to $40.

On the other hand, a break of $28 is concerning. That puts this year’s low at $26.36 into play and then potentially even lower.

As of the date of publication, Bret Kenwell had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

The post 4 Top Stock Trades for Monday: The Dow, TSLA, ROST, FL appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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