4 Top Stock Trades for Monday: AAPL, GOOGL, NCLH, PYPL

It was a quadruple witching day, one of four in the year that can create tough trading environments amid choppy price action. With that in mind, let’s look at a few top stock trades for next week. Top Stock Trades for Monday No. 1: Apple (AAPL) Click to EnlargeSource: Chart courtesy of StockCharts.comBig tech hasn’t been doing great. And with its dominant market cap, Apple (NASDAQ:AAPL) is often atop the list of stocks to watch.Shares violently corrected lower at the start of September. And while that action was initially met by buyers, it has ultimately resulted in a series of lower highs. Now, the stock is failing to hold the two-times range extension and more importantly, the 50-day moving average.InvestorPlace – Stock Market News, Stock Advice & Trading TipsWith Friday’s dip, Apple filled the first of two major gaps from late July.If buyers consider that “good enough,” look to see if they can reclaim the 50-day moving average. Above opens up this week’s high at $118.83 and the 20-day moving average. * 10 Education Stocks to Buy for the Fall School Season Should Apple lose $105, though, it puts the psychologically-relevant $100 mark in play — followed by a possible gap-fill toward $96. I would love a dip to the latter. Not only will Apple fill both of its post-earnings gaps, it will trade down into the 100-day and 20-week moving averages, as well as the 200-day moving average on the four-hour chart. Top Stock Trades for Monday No. 2: Alphabet (GOOGL, GOOG) Click to EnlargeSource: Chart courtesy of StockCharts.comOf the mega-tech stocks out there, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) has been one of the slower moving names. After its quick pullback earlier this month, shares almost instantly failed to hold the 50-day moving average, while also struggling with its pre-coronavirus highs. The stock almost just as quickly lost the 100-day moving average. There are investment arguments to be made for owning this name. However, from a technical perspective, it’s in no man’s land right now. If uptrend support breaks (blue line) — and it’s not a level I would put a ton of faith in — then it puts the 200-day moving average on the table. If it holds, however, we need to see GOOGL reclaim the 100-day moving average, then $1,500. That sets up a test of the 50-day moving average. In a nutshell, traders either need a larger pullback into support or some rotation to the upside that shows commitment. Top Stock Trades for Monday No. 3: Norwegian Cruise (NCLH) Click to EnlargeSource: Chart courtesy of StockCharts.comNorwegian Cruise Line (NYSE:NCLH) tried twice to breakout this month, but both times it was rejected by the 23.6% retracement.Now fading from that level, it’s coming into a key area. While the failed breakout is disappointing, to see Norwegian hold the 20-day and 50-day moving averages would be quite constructive.Above these marks keeps a retest of the September highs in play. If they fail as support, though, it puts $15 in play.This is where things get a little dicey. If Norwegian were to close below $15, it would open the door to (although not guarantee) a test of the August low, near $12.50. * 4 Biotech Stocks to Buy for Big Gains in 2020 Overall, stay on your toes with this one if you’re trading it. Top Stock Trades for Monday No. 4: PayPal (PYPL) Click to EnlargeSource: Chart courtesy of StockCharts.comUnlike Alphabet, which is in a state of limbo, PayPal (NASDAQ:PYPL) is now trading down into a reasonable risk/reward level. That’s not to say this is an all-in long — no stock ever is when trading — but just that the setup is attractive right here. The stock is down almost 20% after declining in eight of 11 trading sessions (if we include Friday). Now fetching a bid at the 100-day moving average (and the 200-day moving average on the four-hour chart), bulls have a defined low (at $171.63, Friday’s low). Those who are buying want to see PayPal stay above that mark while looking for rotation over the two-day high at $178.75.Above that mark almost immediately puts $180 back in play to fill Thursday’s small gap. A move over that mark opens the door back to the 50-day moving average, which has been resistance. If PayPal breaks Friday’s low and can’t reclaim it, it puts the two-times range extension in play at $166.83, and potentially lower. On the date of publication, Bret Kenwell held a long position in AAPL.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America’s 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 4 Top Stock Trades for Monday: AAPL, GOOGL, NCLH, PYPL appeared first on InvestorPlace.

Continue Reading

HEDGE accordingly