Pre-election volatility continues to increase, with FAANG stocks dragging the stock market lower. With that in mind, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Amazon (AMZN)
When I said FAANG stocks led the way lower, I should have sad FAANG minus the “G,” as Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) eked out a small gain on the day, up about 3%.
Here was my preview of Alphabet the other day. Apple (NASDAQ:AAPL) is included in that piece as well. Facebook’s (NASDAQ:FB) pre-earnings outline can be found here.
How about Amazon (NASDAQ:AMZN), though?
Shares are down more than 5% on what really was a pretty good earnings report. With the move, the stock is breaking below the 100-day moving average. The next level that pops up on my chart is the $2,900 area, provided $3,000 does not provide a bounce.
At $2,900, investors will find support from July and September. A close below $2,850, though, and Amazon could be heading towards the 200-day moving average.
On the upside, bulls will want to see AMZN eventually reclaim the 100-day and 50-day moving averages. Above that puts downtrend resistance (blue line) on the table.
Top Stock Trades for Monday No. 2: Twitter (TWTR)
Twitter (NYSE:TWTR) is getting killed on Friday, down more than 20% on earnings. The stock is knifing right through channel support and the 50-day moving average.
Is this stock doomed? Maybe, but it could find support in the $39 to $40 area. That’s no guarantee of course, but it’s where Twitter will find its pre-coronavirus 2020 highs, as well as the 100-day moving average.
Are those the strongest levels of support? Not really. Especially in a heightened volatility situation. But it’s an area of interest to see how the stock responds. Below that will put the 200-day moving average on the table. On a bounce, see how Twitter handles the 50-day moving average.
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