4 Top Stock Trades For Monday: AAPL, CAT, CVX, RIDE

Pressured by some bad earnings reactions, markets are under pressure on Friday as we close out the month of July. That said, let’s take a look at some top stock trades as we prepare for the month of August.

Top Stock Trades for Monday No. 1: Apple (AAPL)

Top Stock Trades for AAPL


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Source: Chart Courtesy of TrendSpider

Sometimes it’s best to act right away when a company reports revenue. Sometimes we can get a bargain on an annoying but unnecessary dip. Other times we can run out of stock because it rises on nothing but “hot air”.

On the other hand, sometimes it’s best to give the stock some time to see how it reacts. We did it with that Apple (NASDAQ:AAPL), which was reported earlier this week.

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After the gains, $150 shares fell against resistance but found support near the 21-day moving average. After an inside day on Thursday, Friday’s action isn’t as encouraging. Shares are breaking below Thursday’s low – an inside-down move – as they are rejected by the 21-day moving average.

The caveat, of course, is that Apple could bounce into the shutdown and wipe out some of this opening pressure. So here’s how I navigate through it.

I have to see Apple close above $145.09, its all-time high, as well as the 10-day and 21-day moving averages. That puts $150 into play, followed by the 161.8% expansion.

On the downside, I’m keeping my eye on the $141.50 area. Apple continues to “drain” higher from this area, but if it fails, it puts the 10-week moving average and previous range resistance near $138 on the table.

Top Stock Trades for Monday No. 2: Caterpillar (CAT)

Top stock trades for CAT

Top stock trades for CAT


click to enlarge

Source: Chart Courtesy of TrendSpider

caterpillar (NYSE:CAT) is lower on Friday after the quarterly pre-market release. Down about 3% and bulls are looking for an offer.

Keep a close eye on the 200-day moving average. Should it cause a bounce, we may see a rebound in a downtrend resistance. Things get interesting, though, when Caterpillar fails to hold onto the 200-day moving average.

That brings the $199 level into play, along with the 50-week moving average. A test of this area and a bounce would give investors a nice low to trade against. Failure to hold this zone could lead to a test of the $180 to $182 area.

Top Stock Trades for Monday No. 3: Chevron (CVX)

Top Stock Trades for CVX

Top Stock Trades for CVX


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Source: Chart Courtesy of TrendSpider

like caterpillar, Chevron (NYSE:CVX) also reported gains before the opening. Unlike Caterpillar, Chevron stocks move higher, not lower, on the day.

However, as resistance approaches, investors should be cautious. Especially since the broader market here seems a bit vulnerable.

Chevron stocks bounced nicely off the 200-day moving average and quickly regained $100. That’s a win for the bulls. But as the stock continues higher, it’s moving into the 50-day and 21-week moving averages.

If stocks reverse lower than this level, we should keep an eye on the two levels mentioned above – $100 and the 200 day moving average.

If CVX stock can weather the 50-day and 21-week moving averages, it will open the $110 to $112.50 resistance area.

Top Trades for Monday No. 4: Lordstown Motors (RIDE)

Top stock trades for RIDE

Top stock trades for RIDE


click to enlarge

Source: Chart Courtesy of TrendSpider

I have not been a big fan of Lordstown engines (NASDAQ:TO DRIVE) or most of these EV and SPAC stocks. When the stock failed to hold $9, this previous support level became resistance, a bearish technical development.

Ride is now breaking lower, breaking below the critical level of $6.69 earlier this week.

That said, there could be potential for a long position in this name.

That could come if stocks reclaim $6.69. This allows aggressive bulls to go long against this week’s low – currently at $6.06 – and look for a bigger bounce. Specifically, I would focus on the 10-day moving average and the $7.50 level. Above that, $8 is possible, followed by $9.

Remember though that this is purely a spec play in the event that it is set correctly.

At the date of publication, Bret Kenwell had no (direct or indirect) positions in the securities referred to in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publication Guidelines.

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

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