3 top stock trades for Monday: F, MSFT and AFRM
Stock market are heating up on the very first trading day in 2022. The electric vehicle sector are rising as Tesla delivered a stunning delivery report. Let's look at those holdings as part of our top stock trades group. ![]()
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2021 has been a transformative year for $Ford Motor(F.US$. Its share price is up 136%, carrying prices to levels not seen in 20 years. Investors have cheered the company's improving earnings numbers and its continued expansion into electric vehicles. Ford reinstated its quarterly dividend after first halting the payout last year when the global pandemic torpedoed the economy.
Ford shares are rallying nicely Friday morning, up 1.5%. That places them within striking distance of this year's high and at the top end of the recent trading range. In addition, the 20-day, 50-day, and 200-day moving averages are all rising to confirm buyers dominate the trend across all time frames.
This sets up a clean breakout trade heading into 2022.
In a way, 2021 was the year of the mega-cap. The broad market indexes exhibited such little volatility and remained pinned near record highs throughout the year because the largest holdings, like $Microsoft(MSFT.US$, refused to go down. They acted as safe havens even as growth stocks, SPACs, small-caps, and other areas suffered significant drawdowns.
Even now, with the S&P 500 and ending on a high note, many beaten-down areas remain that way. If you want to be a contrarian and bet MSFT stock receives its comeuppance next year, go ahead. For now, the chart looks healthy, and I see a potential breakout trade looming. The past two months saw a sideways base form, with a possible trigger over $345. If prices rise above it, buy the stock.
The third submission for today's top stock charts to buy is a wild card. Unlike its predecessors, $Affirm Holdings(AFRM.US$ finds itself searching for a bottom at the lower end of its price chart. It's a highly volatile stock that fell 50% since last month's peak. Previous to that, shares rose 280% in about six months. So if you can catch it when shares are in favor, significant gains await.
Over the past two weeks, the downtrend's momentum slowed, and support is forming at the 200-day moving average. If prices can climb above the 20-day moving average, it would further confirm that a bottom is in. At that point, I think a quick trip to $130 is in the cards. To be clear, wait for a rise above $109 before pulling the trigger.
Source: InvestorPlace
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Marveller : Thanks
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