After a strong three-day rally, it was a tough weekend for the bulls. Now that we’re heading into a three-day weekend, let’s take a look at some top stock trades for the holiday-shortened trading week.
Top Tuesday Stock Trades No. 1: JPMorgan (JPM)
JP Morgan (NYSE:JPM) is about to close out one of its worst post-earnings reactions in a day. With the decline, the stock crosses all major daily moving averages on the chart.
It also cuts some notable weekly moving averages.
If it continues to decline, let’s see if JPMorgan can find a spot near channel support. Below this level, the December low could be in play at $151.84.
On the upside, however, pay attention to any moving averages above it. In the event of a bounce, see if JPMorgan can recover those marks, otherwise it could turn into a short setup.
Top Tuesday Stock Trades #2: Lucid Motors (LCID)
Lucid engines (NASDAQ:LCID) will be watching closely for a weekly downward rotation next week.
The action has faded sharply from this week’s high and now sits just above Monday’s low at $40.43. Next week traders will watch this level to see if it fails.
If so, the 10-week and 21-day moving averages are on deck. However, if they fail as support and Lucid loses the $40 level, we could see another pullback to $35 and the 21-week moving average.
On the upside, though, let’s see if Lucid can push back the 50 days.
Top Tuesday Stock Trades #3: GameStop (GME)
I was very careful about GameStop (NYSE:GME) since the stock broke below $159. Once that level failed as support, it became resistance as GameStop struggled to recover its daily moving averages.
Now it is making new lows as it failed to hold the fourth quarter low as support at $129.50. From there, one has to wonder if the $100 level is now in play.
At this point the stock is broken and I don’t want to do much with it just yet. The only hope left for him is the 21-month moving average.
If this area holds, look for a bounce off the Q4 low. However, don’t be surprised if it’s resistance. Above this level, the 10-day moving average places the 21-day decline on the bridge.
Tuesday’s Top Trades #4: Union Pacific (UNP)
We watched Union Pacific (NYSE:UNP) all week and it made us a nice sweet little day trade this morning.
The stock is now near the low of the week, but it is also on the 50-day and 10-week moving averages and the uptrend support (blue line).
If this area fails as support, it can usher in increased selling pressure. However, this stock has been a good performer, so if it can get some sort of reversal brew or rally from here, it puts the $249 level in play.
Above $250, and the $254 to $255 area may be on deck. Early next week I would like to see some sort of undercut from this week’s low followed by a quick reversal, but let’s not jump to a guess or build any preconceived biases.
Let the graphics do the work.
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 Publication guidelines.
Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell.