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Top 4 stock trades for Monday: SPY, AAPL, LULU, MU


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We got the jobs report before the open, and while it beat economists’ expectations, it wasn’t enough to lift the market. We will address the S&P500 as part of our major stock trades next week.

Note: This will be the last column of major stock trades for a while. Thank you to everyone who has been a reader over the years. Discussing technical analysis and different timeframes was a real pleasure. Now, watch your risks and trade them well!

Top Monday Stock Trades #1: S&P 500 ETF

Click to enlarge

Source: Chart courtesy of TrendSpider

I look at it SPDR S&P 500 ETF (NYSEARC:TO SPY) every day. We had a powerful upward push in volume of over 80% over three days last week, setting a bullish tone this week. So far, however, the period of consolidation has been choppy.

This is when the S&P is trading in an earlier support zone – which failed last month – and is holding above the 10- and 21-day moving averages. The bulls want to see the SPY hold above $407 and the 10-day moving average.

However, they need to see the SPY hold above $405. If he loses $405, he loses momentum and puts $400 or less back into play.

If the SPY can hold its own, next week’s focus will be on $417.50, which is around this week’s high. Above that (and therefore the 10-week moving average) and the bulls could be looking at a push towards the $421 level, followed by the 50-day moving average.

Top Monday Stock Trades No. 2: Apple

Top 4 stock trades for Monday: SPY, AAPL, LULU, MU
Click to enlarge

Source: Chart courtesy of TrendSpider

Apple (NASDAQ:AAPL) was trading quite well this week, holding above the 10- and 21-day moving averages. It even recovered the vital $150 level, closing above it on Thursday.

Friday was a different story. The stock fell about 4%, returning below its short-term moving averages. On the positive side, it holds that $144 zone and is changing. I’d like to see a little more of a catalyst than that, though.

From there, the bulls want to see Apple reclaim the 10-day and 21-day and preferably break through Friday’s high near $148.

On the downside, a breakout and close below $144 opens the door to the $136-$138 zone, where Apple stock hit a nice low last month. A test of this zone keeps the 2022 low in play near $133.

Top Monday Stock Trades #3: Lululemon

Top 4 stock trades for Monday: SPY, AAPL, LULU, MU
Click to enlarge

Source: Chart courtesy of TrendSpider

Lululemon Athletica (NASDAQ:LULU) delivered a beat and raise quarter, but the stock is down slightly on the day. On the positive side, it maintains its short-term moving averages and hits its highest level in several weeks.

If it can hold above $300 and clear $315, Lululemon stock could hit the $330-$335 area. There he finds the 50% retracement and the 50-day moving average. Above, it opens much more to the upside.

On the other hand, a break of the post-profit low, as well as the 10- and 21-day moving averages, puts the key $285 level into play. Below that and the $265 fill level is vulnerable.

Monday’s Top Trades #4: Micron

Top 4 stock trades for Monday: SPY, AAPL, LULU, MU
Click to enlarge

Source: Chart courtesy of TrendSpider

Micron (NASDAQ:MU) seemed ready to join Advanced micro-systems (NASDAQ:AMD) with a powerful breakout, but was unable to break above $75. It was resistance in consecutive sessions and marks a key resistance point on the chart.

With today’s drop, Micron is going below too many key moving averages. Now we have to see how it gets back into place. Can he reclaim Friday’s high and those key moving averages, putting $75 back in play?

Alternatively, it may have a date with falling range support near $65 to $66. Otherwise, it’s caught in the middle of the range and looks too much of a draw at current levels.

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: SPY, AAPL, LULU, MU 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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