As we near the end of the week, we’ve seen some bumpy but ultimately rewarding price action. Bulls enjoyed a strong finish to the week as the S&P 500 sits just below all-time highs. That said, let’s take a look at some of the top stock trades for Monday.
Top Stock Trades for Monday No. 1: Ford (F)
Ford (NYSE:F) has been trading well the past few days following the unveiling of its new electric F-150 Lightning. Shares are closing in on the prior 52-week highs as a result.
This week’s move gave investors a huge push over the 61.8% retracement after reclaiming the 10-week moving average. On the downside, we need to see these measures act as support to keep the long thesis intact.
Ford price action looks like a multi-month bull pennant consolidation. If it continues higher, look to see if it can push through $13.62. If it can, look for a potentially longer-term target of about $15, where the 161.8% extension comes into play.
Top Stock Trades for Monday No. 2: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) spiced up our Friday, announcing that the board had approved a 4-for-1 stock split. The news sent shares climbing on the day, ultimately giving bulls a weekly-up rotation.
I wouldn’t say Nvidia isn’t out of the woods, because it does look much better if it can close weekly-up and above prior range resistance near $590. However, if it loses these marks, it’s possible we revisit the two-week low near $538 to $540.
Over $600 and I think bulls have to keep $648 in mind. If we can get some pre-earnings momentum along with some pre-split momentum, $668 isn’t out of the question — the 161.8% extension.
Above that, and perhaps a longer-term target of $700 to $715 is within reach. It might take a post-earnings rally to get us there, though.
Top Stock Trades for Monday No. 3: Foot Locker (FL)
Foot Locker (NYSE:FL) is up about 2% on earnings, but is somewhat mixed on the day as it sports a wide trading range.
This stock has enjoyed a strong uptrend for many months now, riding its 50-day and 10-week moving averages higher. It now continues to hold up over the $59 to $60 breakout area.
On a dip, bulls need this zone to hold as support, as there are so many key measures here. Otherwise, if it loses these marks, it signals a change in tone. That could put the $55 level in play, along with the 21-week moving average.
On the upside, though, we need to see the stock take out its 21-day and 10-day moving averages. Above the post-earnings high puts the gap-fill level in play at $63.88. Above that, and the recent high near $66.60 is on the table.
Top Trades for Monday No. 4: Virgin Galactic (SPCE)
Virgin Galactic (NYSE:SPCE) popped on Thursday, but faded hard from the highs. However, the stock held its 21-day moving average by the close. Phew.
We had an inside day on Friday, despite the stock being up more than 6%. If we get an inside-and-up day on Monday, investors will have their focus on $24.
A short-squeeze and/or buying from momentum traders could get SPCE stock there, followed by a potential test of the cluster of major moving averages just above that area.
On the downside, watch for a break of the 10-day and 21-day moving averages. That could put a gap-fill in play toward $17.27 on the table. If that doesn’t draw in buyers, $15 could be next.
For now, though, momentum favors the bulls.
On the date of publication, Bret Kenwell held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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