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4 Top Stock Trades for Monday: LCID, HOOD, MU, FL

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·4 min read
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  • FL
  • HOOD
  • MU

It’s been another choppy day in the stock market. The S&P 500 and Nasdaq futures climbed to new all-time highs overnight, but only the latter was able to make new highs in the regular-hours session. Let’s look at a few top stock trades going into the weekend.

Top Stock Trades for Monday No. 1: Lucid Motors

Top stock trades for LCID
Top stock trades for LCID


Click to Enlarge

Source: Chart courtesy of TrendSpider

This seems to be everyone’s favorite stock right now. Lucid Motors (NASDAQ:LCID) has stormed onto the scene and is demanding an intense valuation as investors speculate whether it can be the next Tesla (NASDAQ:TSLA).

Despite just starting production, the stock has a valuation of roughly $90 billion.

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As for the stock, LCID gave us a sweet bearish reversal earlier this week. However, it found support right at the 10-day moving average.

With the bounce, shares are back over Thursday’s high (giving us a daily-up rotation) and back over $50. From here, I have my eyes on a few levels.

The first is the 78.6% retracement of the entire range at $54.43. For now, shares are being rejected from this level. If that remains the case, the 10-day moving average and this week’s low are what investors need to watch on the downside.

Above $54.43, $55.68 is the next level to watch — the closing high from this quarter. Over the November high at $57.75 and a push into the $60 to $65 area is possible.

Remember, when these high flyers start to wobble, it can become quite volatile.

Top Stock Trades for Monday No. 2: Robinhood

Top stock trades for HOOD
Top stock trades for HOOD


Click to Enlarge

Source: Chart courtesy of TrendSpider

It’s been a rough stretch for Robinhood (NASDAQ:HOOD), which is working on its fifth straight daily decline and eighth decline in the last nine sessions.

For Robinhood, the setup is simple: I want to see the stock back above the day-one IPO low at $33.35.

If it can do that, perhaps the 50-day moving average will be in play.

I like seeing that bit of divergence on the Williams %R reading at the bottom of the chart, as well as support coming into play near $30. However, without some sort of rotational proof, it’s hard to be overly bullish on this name right now.

Top Stock Trades for Monday No. 3: Micron

Daily chart of MU stock
Daily chart of MU stock


Click to Enlarge

Source: Chart courtesy of TrendSpider

Micron (NASDAQ:MU) is popping on the day, up by nearly 8%. The move helped send the stock to its highest level since summer as Micron tries to rotate over its Q3 high.

That high comes into play at $83.07. If we get a close above this mark, $85 resistance will be the next so-called line in the sand. Above $85 and we could see a significant push higher.

Keep in mind, $95 has been major resistance.

On the downside, I want to see the 200-day and 50-week moving averages hold as support near $80 — provided that Micron dips that far. If this area fails as support, we could see a retest of the $76.40 level.

Top Trades for Monday No. 4: Foot Locker

Top stock trades for FL
Top stock trades for FL


Click to Enlarge

Source: Chart courtesy of TrendSpider

Foot Locker (NYSE:FL) is backpedaling on Friday, as the stock retreats on disappointing earnings.

In the lead up to earnings, Foot Locker was chopping around its 200-day moving average. On Thursday, it not only cleared this level but it also cleared downtrend resistance (as seen in the blue line).

Today’s gap-down is nasty stuff. It sent Foot Locker stock hurling below the 10-day, 21-day, 200-day and 50-week moving averages.

The silver lining is that uptrend support and the 50-day moving average are holding as support. Bulls who want to take a stab at FL stock can do so with a stop against Friday’s low.

A move below this level (at $49.02) could put the November low in play at $47.97. Below that and $45 is on the table. On the upside, let’s see if we can retest the 21-day moving average, then today’s high near $54.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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

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