Equities exploded higher, with the Nasdaq Composite hitting a record high, as a better-than-expected labor report sent stocks higher. With that in mind, let’s look a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Slack (WORK)
Slack (NYSE:WORK) stock is getting hammered on Friday, down more than 14% after disappointing quarterly results. However, shares declined right down into potential support.
The $30 to $30.50 area was multi-month resistance, keeping a lid on WORK as bulls continued to bid it higher. On Friday’s gap down, though, Slack found buyers just before this level was hit — pushing it back up toward $33.
Next week, bulls have a big task ahead of them. They need to build on Friday’s momentum off the lows, preferably pushing shares back above the 20-day moving average. If it can, it will begin to fill back into the gap.
On the downside, however, see how Slack handles the 50-day moving average should shares break below $30.
Top Stock Trades for Monday No. 2: Nvidia (NVDA)
I made a point earlier, highlighting how Nvidia (NASDAQ:NVDA) has been sluggish since reporting earnings. That said, though, the bears haven’t been able to crack this stock — which rallied hard into earnings before reporting a solid result.
It has continued to hold the 10-day moving average over the past week, as shares work on pushing over $355.
This setup is simple. Over $355, and $360 is in play. Once we get to next week, look to see if Nvidia can go “weekly up” by rotating over this week’s high (currently at $359.88). A move over that could put the all-time highs near $367 in play.
On a break of the 10-day moving average, though, see how Nvidia does on a test of the 20-day moving average and uptrend support (blue line). Below puts $310 and the recent low near $320 in play.
Top Stock Trades for Monday No. 3: Royal Caribbean (RCL)
The “reopening America” trades have been red hot, and cruises aren’t missing out on the action. Royal Caribbean (NYSE:RCL) is among the group, up more than 20% on Friday alone.
In late May, RCL stock broke out over multi-month resistance near $50, then held this level as support. After several days of consolidation, RCL exploded higher on Friday — reclaiming its declining 100-day moving average amid the move.
Bulls will now want to see this level hold as support. On the upside, see if Royal Caribbean can extend up into the $75 to $80 zone where it finds the 50% retracement and resistance from March. Above puts the 200-day moving average in play.
Top Stock Trades for Monday No. 4: Carnival Cruise (CCL)
Carnival Cruise (NYSE:CCL) is also performing well, ending the day Friday up more than 16%. However, the stock has not been trading as well as RCL.
That said, after a solid double-bottom in March and April, shares put in a higher low before breaking out over resistance near $18. Now after gapping higher on Friday, CCL faces a tall task.
Shares face the 38.2% retracement, declining 100-day moving average and a big gap between $24.50 and $27. Above that, and the 200-day moving average is a possible upside target. But if I’ve been long this name, I’d be trimming a bit into this strength.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA.