Following a tough Thursday, equities again sold off on Friday despite a better-than-expected non-farm payrolls report. That said, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) shares were trying to clear $50 on Friday morning. Really, all week the stock has been trying to clear this mark. At $50, there’s also the 50-day moving average.
So, what now?
Well, it’s actually a pretty straight-forward setup. If AMD is able to clear $50, this mark becomes must-hold support for nimble bulls. It also opens up the possibility of a run to the $53 area, filling the gap-down from last month.
If AMD can’t clear and hold $50, though, investors have to be open to the possibility that shares dip down to the 100-day moving average and $41.80 level. The latter is the prior high from November, and roughly marked the low from last month’s spill. Below that, and the 200-day moving average is possible.
Top Stock Trades for Monday No. 2: Walmart (WMT)
Walmart (NYSE:WMT) shares are actually holding up pretty well. That’s particularly true given that the stock topped out in November and has had very little momentum since.
The stock finished the day Friday in the green, and is easily outperforming the S&P 500 and the Dow Jones Industrial Average. It’s also over the 200-day moving average and $113 level.
On a move below $113, however, bullish traders may consider stopping out of their position — as $107.50 to $110 could be next followed by $105. If the stock pushes higher, though, I want to see it clear its 50-day and 100-day moving averages. Above that, and downtrend resistance (blue line) is possible.
Top Stock Trades for Monday No. 3: Salesforce (CRM)
Salesforce (NYSE:CRM) was holding up to the selling pretty well, likely due to its recently better-than-expected quarterly results. Now, though, the selling is starting to get to CRM like a tree that stood strong after a storm-related injury, but is succumbing to an infection.
The stock broke below the prior breakout mark near $165, as well as the 100-day moving average. It’s now into its 200-day moving average, putting a tight range in play.
So, either the 200-day holds and shares return to $165, or it fails and CRM declines to $155. If it’s former, the 100-day moving average is in play. If it’s the latter, though, CRM could see $150 or lower.
Top Stock Trades for Monday No. 4: Gilead Sciences (GILD)
Since hitting its 2018 low, Gilead Sciences (NASDAQ:GILD) has been slowly but surely on the mend. Over the next year, GILD stock put in a series of higher lows, highlighted by uptrend support (blue line).
However, a rush of buyers have come into Gilead now — bidding it up and over the 200-day moving average. This area now needs to act as support if and when GILD eventually retests it.
For now, though, $80 is the must-watch mark. This level has been resistance since mid-2016 and was last week. However, if GILD stock can breakout over this mark, it could trigger a larger move higher.
Like we said with Zoom Video (NASDAQ:ZM), it’s tempting to stay with what’s working. But we suggested taking at least some profits after the move. And after finishing Friday down 8.5%, one can see why it’s prudent.
Therefore, selling some Gilead now may be prudent, particularly if $80 continues to act as resistance.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CRM.