Stocks grinded lower during a “quad witch” expiration day and as we’re more than halfway through September. As we turn our attention to next week, let’s look at a few top stock trades.
Top Stock Trades for Monday No. 1: Palantir (PLTR)
I have been bullish on Palantir (NYSE:PLTR), as the stock slowly but surely grinds its way higher. But slowly sure has been a big part of that equation.
The stock reclaimed all of its major moving averages, but continued to struggle with $25.50. On the plus side, the 200-day moving average was acting as support, as was the $25 level.
Surprisingly, the stock has found some recent bullish momentum, despite the struggles of the overall market. This is known as “relative strength.”
In any regard, let’s see if the stock can now hold the $27.50 level as support, as it broke out over this level on Thursday. On the upside, keep $31 on your radar, which is roughly where the gap-fill comes into play from February.
Top Stock Trades for Monday No. 2: U.S. Steel (X)
U.S. Steel (NYSE:X) was looking so good, but then the stock failed with the $30 level and rolled over.
Shares were trading in a very orderly downward channel, but failed to hold the 10-day, 21-day and 50-day moving averages. It resulted in a break lower out of the channel.
We now have the stock coming into the 200-day and 10-month moving averages. I would expect this area to provide a bounce, potentially back toward the $24 to $25 area. Any higher and the stock should run back into some of its short-term moving averages.
On the downside, though, I expect $21 to act as support if the two nearby moving averages fail.
Top Stock Trades for Monday No. 3: DoorDash (DASH)
DoorDash (NYSE:DASH) keeps powering its way higher, as it logged its fourth-straight weekly gain and eighth daily gain in the last ten sessions.
On Thursday, shares gapped higher into resistance and the 78.6% retracement. As a result, it backed off the session highs, but didn’t exactly roll over. On Friday, it tried to push through these levels again.
If the stock can clear this week’s high at $227.40 and hold above it, we could be looking at a run back toward $250 and the high at $256.
However, below the two-day low, and we may see DASH stock dip back toward $210 and the 10-day moving average. For what it’s worth, this wouldn’t be unhealthy price action by any means.
Top Trades for Monday No. 4: Redfin (RDFN)
We’re rounding off the week with Redfin (NASDAQ:RDFN), which has seen a series of lower highs over the past few months.
Downtrend resistance (purple line) has been squeezing this name lower, but bulls are trying to make a stand now.
Shares have put in a higher low, while we saw the stock reclaim the 10-day and 21-day moving averages on Friday despite a weak overall market. However, this one isn’t out of the woods quite yet.
If RDFN stock loses the 10-day and 21-day moving averages, it’s still technically okay as long as it holds trend support (although it’s better if it doesn’t lose these measures to begin with). However, below $46.70 and this one could roll back over.
On the upside, though, we could see a push back to the 50-day moving average. Above that puts downtrend resistance on the table. Should RDFN stock clear these marks, then $60 is the spot to watch.
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.