4 Top Stock Trades for Monday: NVDA, LULU, AVGO, SOFI

Stocks caught a lift after the May jobs report was good however not nice and barely missed expectations. That has traders considering the labor market is recovering, however the Fed’s “easy money” insurance policies are nonetheless wanted. Now, let’s have a look at a number of high inventory trades.

Top Stock Trades for Monday No. 1: Nvidia (NVDA)

Top inventory trades for NVDA

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Source: Chart courtesy of TrendSpider

Nvidia (NASDAQ:NVDA) has been on a torrid run. Shares are up virtually 30% in simply 12 buying and selling periods and have rallied in 11 of these periods. It’s one down day was to the tune of a 1.35% decline. Not dangerous.

In a considerably attention-grabbing remark, shares truly dipped on earnings a number of weeks in the past, then rallied the next day. The late rally kickstarted this large transfer we’re seeing now.

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But are we operating out of steam?

Whether we use the bigger and deeper vary or the newest, each measures have the 161.8% extension coming into play between $708 and $716. It wouldn’t be odd to see some profit-taking up right here — or at the least a pause.

However, Nvidia is a troublesome one as a result of it runs a incredible enterprise and has been consolidating for a number of quarters. From an funding perspective, bulls could not need to half methods with the inventory, even when some sort of dip may happen.

On a pullback, regulate the 10-day transferring common and the $650 stage. A take a look at of both could also be good for a bounce.

On the upside, a transfer via $717 may put $750 to $766 in play.

Top Stock Trades for Monday No. 2: Lululemon (LULU)

Top stock trades for LULU

Top inventory trades for LULU

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Source: Chart courtesy of TrendSpider

Lululemon Athletica (NASDAQ:LULU) isn’t giving us a lot to work with after earnings, nevertheless it’s higher than nothing. Shares ended the day on Friday up practically 4%.

In April, the inventory broke out of a brutal downtrend, nevertheless it struggled to keep up momentum over the 200-day transferring common. The correction in May didn’t ship the inventory again to its lows — which is nice — however we’ve seen a narrowing wedge sample type since that decline.

Now testing into wedge resistance, bulls are anxious to see if Lululemon can garner some momentum. If it pushes via this mark, see if shares can go monthly-up over $331.64. Above that places the 200-day transferring common in play, adopted by the April excessive at $347.

If LULU inventory can’t push via resistance, see if the 50-day transferring common and wedge help buoy the inventory. If not, the low $300s could possibly be in play.

Top Stock Trades for Monday No. 3: Broadcom (AVGO)

Top stock trades for AVGO

Top inventory trades for AVGO

Click to Enlarge

Source: Chart courtesy of TrendSpider

Broadcom (NASDAQ:AVGO) additionally isn’t giving us a lot to work with after earnings, ending Friday up 2.2%. Also like Lululemon, the inventory isn’t breaking down nevertheless it’s starved for upside momentum.

Shares proceed to wrestle with the $478 space. If the inventory can push via Friday’s excessive (and thus this week’s excessive), maybe we will get some form of rotation larger.

If that’s the case, $490 could possibly be in play. That’s been stout resistance. Above that and $500-plus is feasible.

On the draw back, watch for a dip all the way down to the 10-day and 50-day transferring averages. Below may put $450 and the 21-day transferring common in play. Below that and the $425 vary help space is on the desk, together with the 200-day transferring common.

Top Trades for Monday No. 4: SoFi Technologies (SOFI)

Top stock trades for SOFI

Top inventory trades for SOFI

Click to Enlarge

Source: Chart courtesy of TrendSpider

Earlier this week, SoFi Technologies (NASDAQ:SOFI) rocketed out of its current base as soon as its ticker change from “IPOE” to “SOFI” occurred. In that run, shares rallied to $24.95.

Since then, we’ve seen a harsh two-day decline again beneath the 61.8% retracement and a short dip beneath the 10-day transferring common. Bouncing from the 10-day now, let’s see if the inventory can keep above this measure.

If it may well’t, Friday’s low stays weak. Below it places the 21-week, 10-week and 21-day transferring averages in play. That could be a good shopping for alternative for bulls.

Back above $22.50 — round the place the 61.8% retracement comes into play — places this week’s excessive in play close to $25. Above that and maybe the excessive at $28.26 is feasible.

On the date of publication, Bret Kenwell held a protracted place in NVDA. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the supervisor and writer of Future Blue Chips and is on Twitter @BretKenwell.

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