4 Top Stock Trades for Monday: GOOGL, SNAP, PINS, CHWY 

Stock Market

After a rapid rebound this week, the stock market took a break, dipping several percent for the bulk of Friday’s session. Let’s look at a few top stock trades for Monday.

Top Stock Trades for Tomorrow No. 1: Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) has been climbing back from the depths, along with the rest of the market.

A few weeks ago, I pointed out long-term support near $1,000. The stock basically hit that level on Monday, bottoming at $1,008. In any regard, shares are now trending higher, as uptrend support (blue line) guides GOOGL upward.

For now, $1,140 to $1,150 is acting as a ceiling to the stock, stymieing its advances. From here, one of two things will eventually happen. Either Google will break out over resistance or uptrend support will fail.

If it’s the former and resistance gives way, $1,175 becomes the first upside target. If it climbs above $1,220, the 200-day moving average is in play. GOOGL will likely need the overall market to be in “rally mode” for this upside target to be achieved, though.

Should uptrend support fail, it puts $1,050 back in play, with the recent low on the table below that.

Top Stock Trades for Tomorrow No. 2: Snap (SNAP)

Top Stock Trades for Tomorrow No. 2: Snap (SNAP)

Snap (NYSE:SNAP) stock has taken a drumming amid this market-wide selloff. Shares hit a high north of $19.50 in January and a low below $8 earlier this month. That’s good for a 60% decline in two months.

Since then, though, Snap stock has posted one of the sharpest V-shaped rallies I’ve seen in quite some time. Shares are up more than 50% from the lows, as Snap stock flirts with the key $12 level.

A close over this mark could trigger a rally up to the $12.50 to $13 area, the latter of which will fill the gap from earlier this month. If Snap can garner momentum above $13, it puts potential downtrend resistance (purple line) in play, along with a trifecta of key moving averages up near $15.

Top Stock Trades for Tomorrow  No. 3: Pinterest (PINS)

Top Stock Trades for Tomorrow  No. 3: Pinterest (PINS)

Pinterest (NYSE:PINS) is another struggling social media stock, with shares coiling near $15.

After pushing through $14.25, the stock is now struggling with roughly $15.50. If it can reclaim this mark, it puts the $17.50 to $18 zone on the table. However, keep in mind that if market-wide selling pressure picks up, PINS and SNAP will likely struggle to hold their steep uptrend marks (blue line).

Falling below $14 could trigger more downside, potentially down to $12 or even lower.

Top Stock Trades for Tomorrow No. 4: Chewy (CHWY)

Top Stock Trades for Tomorrow No. 4: Chewy (CHWY)

Chewy (NYSE:CHWY) was hit hard earlier this month. Shares almost avoided a new 52-week low, but just one gnarly session made sure that wasn’t the case.

However, since then the stock has been on tear — and understandably so. People are taking care of their families, and that includes their pets too. Chewy can hardly keep up with the demand and Wall Street has finally picked up on it.

Next, Chewy stock needs to hurdle $35 resistance. A close over $35 could trigger a rally up to $37.50-plus, potentially putting $40 or higher on the table.

On a pullback, see if channel support holds as support (blue line). Falling below that puts the 50-day moving average in play near $29.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GOOGL and PINS.

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