It looked like it was going to be a rough day for investors, but Monday’s action proved otherwise. While Friday was a painful day for bulls and with futures pointing to more losses on Sunday night, all it took were some positive trade-related headlines to turn things around. After Monday’s rally, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow #1: Netflix
Netflix (NASDAQ:) continues to struggle, locked in a tough downtrend that’s pressured the stock to new recent lows for 2019.
A name that would normally rally from lower interest rates, NFLX stock continues to struggle as its quarterly results haven’t been impressive enough and as streaming competition increases.
We near $340 and subsequent pullback since. Still below downtrend resistance (blue line), investors need to see NFLX hurdle this level, as well as the 20-day moving average. Over the latter and a run to the 50-day could be in the cards.
Should it lose the $288 mark, a decline to $270 could be in the cards.
Top Stock Trades for Tomorrow #2: Amgen
Amgen (NASDAQ:) caught a 2.5% boost on Monday after it was announced that it will buy Otezla from Celgene (NASDAQ:) for $13.4 billion. The former gets a solid asset while the latter gets a good price and likely takes a step toward FTC approval to be acquired by Bristol-Myers Squibb (NYSE:).
AMGN has a nice-looking bull pennant forming over the past few weeks. Shares continue to bump up against $205 resistance, while uptrend support (purple lines) keep squeezing shares higher.
A break over resistance could send AMGN higher, with the first target being the $210.41 highs. Above that, and a test of channel resistance (blue line) is technically possible.
Top Stock Trades for Tomorrow #3: Bristol-Myers Squibb
Speaking of Bristol-Myers, it too has been trading well. After bottoming near $42.50 about a month ago, shares have been in a steady climb higher.
While BMY was rejected from channel resistance on Monday, investors are hoping support can buoy the name. Above the 200-day moving average, and the stock still looks good on the long side. Below and a test of the 20-day moving average, as well as channel support, is on the table.
Top Stock Trades for Tomorrow #4: Aurora Cannabis
Pot stocks remain pressured, and Aurora Cannabis (NYSE:) is lodged in a brutal downtrend. Once $7 gave way, the stock has really struggled to come up for air.
While ACB made new 2019 lows on Monday, shares did reverse higher and turn positive. That’s a good sign for bulls, although it doesn’t mean the stock has found a bottom.
Bulls’ first assignment is to get the stock back above $6. If they can, over current downtrend resistance is the next task. That will put the 50-day moving average on the table, in that event.
On the downside, watch Monday’s lows. Should they give way, it could usher in a flush down to $5.50 and $5, respectively. Look for channel support to continue buoying the name.
Top Stock Trades for Tomorrow #5: Foot Locker
It was a tough day in the markets on Friday, but Foot Locker (NYSE:) was under extra pressure after reporting earnings.
Shares are putting together a nice reversal rally on Monday. If it can maintain some of that momentum, it has a chance to retest downtrend resistance (blue line). Above resistance and the 10-week moving average, and a test of $42.50 is possible.
Below Monday’s open and Friday’s close though puts this week’s low on the table. If it doesn’t hold FL up, a test of $30 is possible.
Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CELG.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.