3 top stock trades for Monday: MU, LCID, COST
After a couple of tough days in the market, investors had to sort out the non-farm payrolls report on Friday. With that in mind, let's look at a few top stock trades for next week. ![]()
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$Micron Technology(MU.US$ is a name I have kept on my go-to list ever since it surged higher on earnings and has essentially ignored the recent correction in the stock market.
While the stock finally broke to new all-time highs (with the prior high coming into play at $97.50 from the year 2000), Micron has pulled back recently.
Shares are testing down into the 10-day moving average, giving bulls a dip-buying opportunity. Starting Monday, investors who are long or looking to get long can consider inching their stop-loss up to this week's low.
Over $95.75, and the recent high is in play at $98.45. Above that puts $100 in play. ![]()
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On the downside, though, a break below this week's low could ultimately put $92 in play, then the 21-day moving average. ![]()
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$Lucid Group(LCID.US$ has been in a slumber lately, but woke up on Friday, rallying 13.3% at one point. From Thursday's low to Friday's high, the stock was up 28%.
However, Lucid Motors ran right into its 50-day moving average and daily VWAP measure. From there, the stock faded, which was to be expected.
On the downside, $40 is a key level, along with the 10-day and 21-day moving averages. A break back below those marks puts $36 back in play.
On the upside, however, a move over this week's high (so Friday's high) could open the door to the 61.8% retracement of the current range, up near $48 to $49.
$Costco(COST.US$ is another interesting stock from Friday's action. Shares came back and tagged the post-earnings low near $536, which was also a support area after the company reported earnings.
That level coincided with the 50-day moving average and the stock was a relative strength leader until this week (where it technically declined all five days). However, two of those daily losses were less than 0.2% and three of them were less than 0.5%.
In any regard, the relative strength combined with the level of interest at $536 and the 50-day moving average made Costco a buy today.
We got a decent bounce out of it, but bulls are obviously looking for more. If they get it, $550-plus is in play, with the 10-day and 21-day moving averages on the table above that.
On the downside, a break of Friday's low and a failure to reclaim it should have bulls cautious and/or potentially stopping out of their long position (depending on their trading objective and risk tolerance).
Source: InvestorPlace
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