4 Top Stock Trades for Monday: PTON, PFE, FSLY, SPAQ

Stocks continued to slowly chop their way higher on Friday, in what ended up being a fairly sleepy session. Let’s look at a few top stock trades for Monday after this week’s bounce from the lows.

Top Stock Trades for Tomorrow No. 1: Peloton (PTON)

top stock trades for PTON

Click to EnlargeSource: Chart courtesy of StockCharts.com

What is there to say about Peloton (NASDAQ:PTON) at this point? The thing has been absolutely red-hot and unable to slow its roll … or pedal. Or whatever. Given the run, I’m surprised the company hasn’t done a secondary offering.

In any regard, this stock ripped higher into September, but when it corrected lower with the rest of the market, it found support near the $72.50 breakout mark. The dip was short-lived and shares soon broke out again, this time over the $95 to $100 zone.

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Since then, it’s been a steady trend higher. Look for a close below the 10-day moving average and uptrend support. Should we get that, the stock could revisit the 20-day moving average. Below that and $100 is on the table.

I am in no hurry to short a runaway train, whether the valuation makes sense or not.

Top Stock Trades for Tomorrow No. 2: Pfizer (PFE)

top stock trades for PFE
top stock trades for PFE

Click to EnlargeSource: Chart courtesy of StockCharts.com

The setup in Pfizer (NYSE:PFE) is pretty straightforward, particularly now that it has gotten through the choppy stuff.

The 200-day moving average held as firm support amid the September dip, as did $35.50. However, the rise from that point wasn’t exactly smooth (although it worked).

Shares slowly chopped their way through the 20-day and 50-day moving averages, before aggressively popping off the latter on Friday, rallying over 3.5%. Now let’s see if it can clear $38.

This level was stiff resistance in April and May, but turned to temporary support this summer, as resistance shifted to $39. You guessed it: Above $38 opens the door to $39.

On the downside, a move below $36.50 puts the 200-day moving average back on the table.

Top Stock Trades for Tomorrow No. 3: Fastly (FSLY)

top stock trades for FSLY
top stock trades for FSLY

Click to EnlargeSource: Chart courtesy of StockCharts.com

Wall Street’s darling has taken a heavy hit, with Fastly (NYSE:FSLY) now sporting a two-day loss of 31.8%. From the highs hit on Tuesday, shares are down 38.5%.

Wow, talk about a bad week. In any regard, the stock tried to reclaim the 50-day moving average on Thursday after that nasty gap-down. Unfortunately, it couldn’t do it, failing to close above the $91 area.

On Friday it’s slipping below the prior session’s low. Active bulls need to see FSLY reclaim Thursday’s low (at $85.10) and preferably the 50-day moving average. Above that and the post-gap high is in play at $95.35, followed by a possible test of $100.

On the downside, investors have to be aware of the potential for a washout. While the guidance wasn’t absolutely horrendous, it was disappointing, and if FSLY — trading at 44 times 2020 revenue before the fall — is no longer a Wall Street favorite, the stock may struggle for traction.

Let’s see if we get a test of that $72-to-$75 range support area.

Top Stock Trades for Tomorrow No. 4: Spartan Energy Acquisition (SPAQ)

top stock trades for SPAQ
top stock trades for SPAQ

Click to EnlargeSource: Chart courtesy of StockCharts.com

The Nikola (NASDAQ:NKLA) news is sparking doubts that its partnership with General Motors (NYSE:GM) may crumble, and that isn’t helping Spartan Energy Acquisition (NYSE:SPAQ). Even worse though, SPAQ is breaking some key technical levels on Friday.

Shares are breaking decisively lower below the 50-day moving average and uptrend support (blue line). The 20-day moving average is also crossing below the 50-day moving average, as $15 resistance held firm.

On the plus side, the setup is pretty simple.

Shares need to regain $14 for bulls to repair the technical damage. That opens up $15. On the downside, let’s see if the dip finds any support at $12.50, the double-bottom from September.

If it doesn’t, the 200-day moving average is next.

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.

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