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We had a little bit of everything on Friday: It was the last day of the third quarter, an SEC lawsuit for a high-profile company and earnings. So let’s not waste time and dive right into our top stock trades.
Tesla
After the close on Thursday, the SEC announced that it will sue Tesla (NASDAQ:TSLA) chairman and CEO Elon Musk. According to reports, the SEC and Musk were close to a no-plea settlement but Musk turned it down at the last minute. Now he risks being barred as an officer or director of a public company if found guilty.
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Shares were no doubt hit hard on Friday, falling 14%. As you can see on the daily chart above, shares are coming close to the 2018 lows on the year. On the adjacent chart, Tesla is teetering on 200-week moving average support.
This level has been a key support area for three years, so losing this mark would be a bad development for bulls. Going forward, see how TSLA handles the $250 to $255 level and the 200-week moving average.
Below both marks and bulls may want to step to the sidelines until TSLA stock improves.
Some food for thought:
TSLA Stock: The Biggest Opportunities Come From the Loudest Headlines Buy Tesla Stock? Only If You’re Nuts Like Musk
BlackBerry
After a huge move to $12, BlackBerry (NYSE:BB) stock backed off its earnings-fueled rally on Friday. An 11.5% gain is nothing to scoff at, although it’s well off the 17% gains it sported near its highs.
To go long BB stock, let’s keep it simple. Over the 200-day moving and downtrend resistance and investors can be long. Below and BB may need to reset before attempting another rally.
Worth noting is that $12 is the 50% retracement mark from the 2018 highs to the 2018 lows. Still, the close was not an impressive show for bulls.
It was reported on Friday that Facebook (NASDAQ:FB) was hacked and may have compromised some 50 million accounts. Not the end of the world vs. the size of its user base, but not good timing in terms of the rest of the news around Facebook.
Falling below that $167-ish area was discouraging and a close below the 20-day moving average is equally disappointing. Will the $160s hold up as support?
We’ll find out unless FB can accelerate higher. Short-term bulls can buy on a breakout over $167 and target the $175 gap-fill and 50-day moving average. If the $160 level fails as support, look for support near the year’s lows around $150.
Snap
Like General Electric (NYSE:GE) I find no reason to buy Snap (NYSE:SNAP) at this point. On Friday, shares broke to even more new lows, as the losses continue to accelerate.