Top 4 stock trades for Monday: TSLA, MSFT, TWTR, F

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Thursday marks the last trading day of the week, with Friday closed for holidays. Next week is the “Santa Claus” rally, where S&P500 and Nasdaq increased 70% of the time over the past 19 years. With that in mind, let’s take a look at some of the major stock trades entering the final trading week of the year.

Top Monday Stock Trade No. 1: Tesla (TSLA)


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Source: Graphic courtesy of trend spider

If you want me to stay real with you, I have excellent business writing on You’re here (NASDAQ:TSLA). I break down how I approached the stock and why I was looking at it. But then he mistimed the entry and turned what should have been a great rally into a stoppage.

There is no reason to lie or hide losses. In this specific case, it contained a great lesson and I hope it can help some of you with trading.

As for Tesla now, the stock marked the 21-week moving average and rose daily in Tuesday’s session. With Wednesday’s rally, it also recovered the 10-day moving average and closed above $1,000.

From there, I want to see if the stock can climb up to the $1025-$1035 area. There he finds the 21-day and 50-day moving averages. Above that, and $1,100 is in play.

On the downside, however, let’s see if the 10-day moving average is support. Otherwise, the gap-fill level near $940 is on the table.

Top Monday Stock Trades #2: Microsoft (MSFT)

Top stock trades for MSFT
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Source: Graphic courtesy of trend spider

Microsoft (NASDAQ:MSFT) has stalled a bit lately, struggling with the $340 area on the upside but finding support near $320.

Working on its third consecutive daily gain, the stock recovered the 21- and 50-day moving averages. If it can continue higher, I have my eye on that fill level up near $339.

There it will also find downtrend resistance (blue line).

If it is able to break through this zone, the next two highs are evident: the December high at $343.79 and the November high (and all-time high) at $349.67.

On the downside, however, bulls want to see the stock hold the $328-$330 zone – where Microsoft stock finds a bevy of moving averages.

Top Monday Stock Trades No. 3: Twitter (TWTR)

Top stock trades for TWTR
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Source: Graphic courtesy of trend spider

Twitter (NYSE:TWTR) is quite an interesting configuration. Not only are most social media stocks under pressure, but Twitter recently changed CEOs. Despite this, the title continues to struggle.

Stocks are discounted by the 21-day moving average while clinging to the 200-week moving average.

If the stock can cross the 21-day moving average and clear $45, we could see a quick move towards the upper $40s and potentially the 50-day moving average (currently just above $50).

On the downside, however, we have to see the hold of the $41 level as support. Twitter stock is operating on a small dip higher, but a breakout of $41 that is not recovered quickly poses problems for the stock.

Monday’s Top Trades #4: Ford (F)

Top stock trades for F
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Source: Graphic courtesy of trend spider

Last but not least, we have Ford (NYSE:F). I was so excited about this stock when it broke above $20.50.

Not only is this level twice the extension of the summer range, but it is also recent resistance. Interestingly, 161.8% extension of the same range was supported.

And they say Fibonacci extensions don’t make sense.

By any measure, the breakout earlier this month sent stocks to the 261.8% extension of the wider range, where Ford quickly reversed and fell back into its current trading range. Pity. From there, expect one of two things.

  1. A break above $20.55, putting $21.25 back in play, followed by a potentially longer-term push up to $23.
  2. A pullback to range support near $19 could also give us the first touch with the 50-day moving average since September and I like that setup too.

As of the date of publication, Bret Kenwell had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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