Stock Market

After a late-session dip on Thursday, equity markets struggled in early Friday trading ahead of the long holiday weekend, as the U.S. stock market was closed on Monday. Let’s look at a few top stock trades ahead of next week. 

Top Stock Trades for Tuesday No. 1: Nio (NIO)

Nio (NYSE:NIO) has had a busy week, starting on a high note and ending on a low note. 

After Monday’s gap-up, we were looking for either an extension through the high up to the $68.80 area or a pullback to the 10-day moving average. The latter is playing out with Nio’s 7% dip on Friday. 

However, it’s knifing through both the 10-day moving average and the prior all-time high at $57.20. 

If bulls don’t step in early next week, the 21-day moving average and $50 mark is a likely landing zone. If they do, look for a bounce and see how it handles $60. 

Top Stock Trades for Tuesday No. 2: Five9 (FIVN)

I have been waiting all week to write this stock up. I covered Five9 (NASDAQ:FIVN) recently, just in case it had some morning action, but that didn’t turn out to be the case. 

That’s okay, I like Five9 on a weekly basis anyway.

Shares gave us a powerful rally in December, but bulls have seen three straight weekly declines since. Last week, FIVN caught a lift from the 10-day moving average. Now we have an inside week — where this week’s range is within the prior week’s range. 

Now I’m looking for an inside-and-up rotation, where the stock takes out the prior week’s high. In the case of Five9, that will be a move up through $177.40. If we get it, it could put the highs in play near $188, as well as the 161.8% extension. 

If we get an inside-and-down rotation, see if shares retest the 10-week moving average and the two-week low. 

Top Stock Trades for Tuesday No. 3: Tilray (TLRY)

Cannabis stocks have been hot lately, including Tilray (NASDAQ:TLRY). 

However, the stock is seeing some obvious selling pressure here, as it approaches the 2020 high and the declining 100-week moving average. 

From here, I don’t want to see shares lose the $15 mark. That is admittedly a far way down, but let’s not forget Tilray bottomed at $2.43. 

On the upside, a move over $23 could put $35 in play. Near that level, the stock will find the 161.8% extension and a notable prior support/resistance level.

Top Trades for Tuesday No. 4: Progyny (PGNY)

Progyny (NASDAQ:PGNY) has been a massive winner lately, climbing in nine of the past 11 weeks and in seven of the past eight. 

On Friday, shares ignited over the $45 to $45.50 area, which had been acting as resistance. With it, PGNY inches closer to its 161.8% extension, near $49.40. If it can clear $50, perhaps it eventually puts the two-times range extension in play, up at $57.41.

On the downside, a move below the 10-week moving average puts the 21-week moving average in play and VWAP support. 

Top Trades for Tuesday No. 5: BlackBerry (BB)

 I looked at BlackBerry (NYSE:BB) in December, as the stock was puking lower on earnings, saying to look for support at $6.50 to see if buyers stepped in. 

After bottoming at $6.51, I’d say they did just that. Now flying higher, the stock has done what it needed to: It held the 10-week and 100-week moving averages on the downside. 

With last week’s move we were seeing a powerful rotation over the December high and the two-times range extension. However, BlackBerry stock has backed off considerably from the highs. 

From here, I want to see it hold the 161.8% extension. A close below that may put the 200-week moving average back in play. Above the two-times range extension and the 261.8% extension is possible. 

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.

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