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Top 4 stock trades for Monday: SPY, COST, AFRM, ACB


the S&P500 closed lower for the sixth consecutive week, but traded well on Friday, up 2.4%. With that in mind, let’s take a look at our top stock trades for the next week.

Top Monday Stock Trades #1: S&P 500 (SPY)

the SPDR S&P 500 ETF (NYSEARC:TO SPY) had to rebound at some point. Continuing six consecutive weekly declines – despite rising on Friday – is just too much of a negative, even though there are a host of negatives.

We closed strong on Thursday and were looking for a good boost today and we got it. The Bulls kind of fumbled the ball late in the session, but recovered a lot of their mistakes by the end.

So what now?

As you can see from the chart here, the $405 area is tricky. There we have last week’s low and this week’s resistance. It also has active resistance in the form of the 10-day moving average.

If we can clear this area, perhaps the $410-$412 zone could be on the table, followed by a rally to the 21-day moving average. That said, keep in mind the direction the trend has been – down.

If we turn lower again, watch today’s low at $395.61. A break from that – which is roughly Thursday’s high as well – then $392 is on the table. Below $389, and the lows are back near $385.

Top Monday Stock Trades #2: Costco (COST)

Costco (NASDAQ:COST) has traded lower for five straight weeks now, but gives us a doji week as it sits on the 50 week moving average.

If Costco stock can rise weekly above $510.63, the bulls could enjoy more upside. Keep in mind, however, that the 200-day moving average is near this level, so this is an important area for the stock to clear. and stay above.

If he can do that, he puts the $535 area into play, which is the descending 10- and 21-week moving averages. Above it puts $545 in play, which is the 50% retracement.

On the other hand, keep an eye out for $490. If Costco drops, we could be looking at a retest of the lows near $480.

Top Monday Stock Trades #3: Affirm Holdings (AFRM)

Rising from some of the loudest names out there, Affirm holdings (NASDAQ:AFRM) has been crushed lately – aside from Friday’s powerful post-earnings jump on strong results.

The stock breaks away from previous support near $26 and the 10-day moving average. If it cannot reclaim this area, this month’s low remains vulnerable.

However, if the stock can rise from here, the bulls may turn to the $32.50 area and then to the $37.50 area. Between these two measures are the 50-day and 10-week moving averages and they could be resistance.

Top Trades for Monday #4: Aurora Cannabis (ACB)

Aurora Cannabis (NASDAQ:ACB) also rallied to earnings on Friday. It also has air resistance just above it in the form of $2.90 and 10 days.

If he can cross this area, keep an eye out for 21 days, which isn’t too far above this area.

However, if Aurora can really gain traction, $3.40 is in play, followed by $3.65. These two levels are the 50-day and 50% retracement, and the 61.8% retracement and the daily VWAP measure, respectively.

In contrast, failure to recover and/or hold above $2.90 keeps the May low in play.

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.

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