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5 Top Stock Trades for Monday: ZM, GOGO, SNAP, PINS, MSFT

Bret Kenwell

It was a modest day in the stock market Friday, with U.S. equities rising slightly despite a jobs report that came up short of expectations. Here are our top stock trades from Friday.

Top Stock Trades for Tomorrow #1: Zoom Video

top stock trades for ZM

Shares of Zoom Video (NASDAQ:ZM) started off higher on the day, but quickly reversed and trended lower throughout Friday’s session. The move comes after the company reported earnings.

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Discouraging as its breakdown is, it’s even worse that ZM stock failed to hold the vital $90 level. This spot has been support for months now.

If bulls can’t reverse ZM stock higher, the 20-day and 50-day moving average may act as resistance in the intermediate term, just as they did on Friday. On the downside, look to see if the 38.2% retracement near $80 can buoy the name.

Top Stock Trades for Tomorrow #2: GoGo

top stock trades for GOGO

GoGo (NASDAQ:GOGO) stock has been robust over the past few days, rallying from $4 to almost $5 in just a few trading sessions. It’s now approaching the latter — $5 — which has been vital over the past year.

In the course of those few days, GOGO stock cleared the 20-day, 50-day and 200-day moving averages. If it can clear $5 and possible downtrend resistance, a move up to $6 surely isn’t out of the question.

If $5 is resistance, look to see if shares of GOGO find support at the 200-day moving average or the rising 20-day moving average — whichever comes first.

GOGO stock is starting to look attractive on a longer time frame, although it is still a speculative play.

Top Stock Trades for Tomorrow #3: Snap

top stock trades for SNAP

Snap (NYSE:SNAP) is shaping up as a real beauty here. After hugging its 50-day moving average, shares blasted over downtrend resistance (blue line). We also saw an explosion of call options in the October $20 strikes.

The MACD measure is turning in bulls’ favor, while the RSI is nowhere near overbought (blue circles). Bottom line? This one could run and the risk/reward is very defined. Traders may consider using a close below the 50-day moving average as their stop-loss.

If the markets cooperate, $18 shouldn’t be out of the realm of possibilities.

Top Stock Trades for Tomorrow #4: Pinterest

top stock trades for PINS

Pinterest (NYSE:PINS) hasn’t been looking all that healthy lately, falling from $35 last week to $30 at Friday’s lows.

Down five days in a row and right into support may entice some buyers, though. I know it enticed me — although I’ve been wrong before and will be again! I like Pinterest for the long-term and added to my long-term position on Friday.

Shares declined right into the 50-day moving average and the 38.2% retracement at $30.02. If this level fails as support, $29 will be on deck. If it does, look to see if PINS can reclaim $32 and get back above the 20-day moving average.

Top Stock Trades for Tomorrow #5: Microsoft

top stock trades for MSFT

Microsoft (NASDAQ:MSFT) has been one of the more resilient mega-cap tech stocks out there and is still quietly commands the largest market cap among U.S. stocks.

Uptrend support (blue line) continues to squeeze MSFT into static resistance near $140. That describes an ascending triangle — a bullish technical setup. A move over $140 could easily send MSFT to $141.20. Over it and shares are in breakout mode again. Below $136 and the setup will start to fall apart.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PINS. 

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