The S&P 500’s best performer in October looks set for a bigger breakout: Piper Sandler analyst

Wall Street ended October in the red – the S&P 500, Dow Jones Industrial Average and the Nasdaq all closed lower for the month.

Several stocks bucked the trend: Tapestry, Under Armour, GE and General Motors closed out October with double-digit gains.

Tapestry, the top performer, could be setting up for a bigger move higher, according to Craig Johnson, chief market technician at Piper Sandler.

"It sure looks quite bullish here," Johnson told CNBC's "Trading Nation" on Friday. "I would stick with this particular trade into November. You had your beat-and-raise quarter, you're reversing a longer-term downtrend here on the charts."

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"Just looking at it and measuring it out, the next resistance really comes in around $28," said Johnson. "Nice 25-30% upside from current levels. I would still be a buyer of this name in here."

Not all of the best performers may continue to rally. Johnson predicts General Motors, which rallied 17% in October, could pull back following earnings on Thursday.

Danielle Shay, director of options at Simpler Trading, is also betting against a top October performer – General Electric.

"It's been very soft this year and, yes, it has rallied throughout October, but looking at the chart right now, you can see that it just rallied directly into the 200 simple period moving average. So for me, that looks like a short. It looks like a great place where I could sell some call credit spreads on this rally," Shay said during the same "Trading Nation" segment.

GE rose 19% in October. The stock closed Friday at $7.42, below its 200-day moving average at $7.64.

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