5 Top Stock Trades for Wednesday: RL, GPRO, CRON
Stocks are seeing a solid bounce on Tuesday, after taken a pretty serious beating on Monday. The bounce went through a few key technical levels on the short term. Now it gets a little trickier to navigate as we approach the middle of the recent range — especially since many investors feel that another leg down is likely here. Let’s look at some top stock trades for tomorrow.
Top Stock Trades for Tomorrow No. 1: Ralph Lauren
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Shares of Ralph Lauren
(NYSE:RL) are
being hit on Tuesday, falling 4.25% but are off the lows of the day
after the company reported
earnings. It’s promising to see RL bounce, but it’s not out of
the woods yet.
I would feel better about RL if it clawed its way back above $115. That’s particularly true if we start getting more selling pressure in the broader markets. The stock is now below the 20-day and 50-day moving averages and if it can’t reclaim this area, lower prices may be in store.
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I’m watching the $101 area, near the 200-week moving average. Below $100 and the 2018 lows near $95 are on the table.
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RL is sort of in no-man’s land here. I need to see more selling or a further rally to get more interested.
Top Stock Trades for Tomorrow No. 2: GoPro
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Shares of GoPro
(NASDAQ:GPRO) are
ripping higher on Tuesday, climbing almost 10% on the day. The move
emphasizes an important breakout.
Less than two weeks ago we asked if GPRO stock could run 20% to new 2019 highs. I guess we have our answer. But now what? Shares broke through multi-year downtrend resistance (blue line) in March and then pulled back and tested that level this month. Prior resistance held as support and here we go.
In the short-term, bulls have won the battle. But for the momentum to continue, GPRO has a tough test ahead of it. Shares need to push through this $7.60-to-$8 area to really get a sustainable move higher. If it can, perhaps a move up toward the 200-week moving average is possible.
On a pullback, I prefer to see the 10-week moving average hold as support, but need to see the 50-week hold. Below and we get a retest of prior downtrend resistance.
Top Stock Trades for Tomorrow No. 3: Cronos Group
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Where Cronos Group
(NASDAQ:CRON) is
bouncing from comes as little surprise to
InvestorPlace readers. However, be careful as it
approaches channel resistance and a declining 20-day moving
average.
If it can close above the 20-day, then a breakout could get underway. Short of that though, resistance could knock it back down to $14 or down to the 200-day moving average.
Top Stock Trades for Tomorrow No. 4: Take-Two Interactive Software
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Take-Two Interactive
Software (NASDAQ:TTWO) is
finally starting to move higher, this time on earnings,
and is repairing some of the technical damage it suffered in Q4
2018 and Q1 2019. Shares are over downtrend resistance, as well as
the 50-day and 20-day moving averages.
Now what?
The next test will seemingly come from the 200-day near $110. But keep in mind that the 38.2% Fibonacci retracement for the 52-week range rests at $105.61. Failure to hurdle this level could stop TTWO relatively soon. Either way, see that $100 and/or the 20-day moving average hold as support.
Top Stock Trades for Tomorrow No. 5: Tanger Factory Outlet
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Tanger Factory Outlet
Center (NYSE:SKT) has
been disastrous and recently hit a new 52-week low. Its dividend
yield is now north of 7.5%, although the payout appears to be
safe.
The 10-week moving average continues to pressure shares lower, so until SKT can close above that, it remains a tough buy from a trading perspective. The $19 level also acted as a floor for SKT in the past. Ideally we will get the stock above both levels, which will show that it’s got at least a little bit of momentum.
If it can’t get back above $19 and its 10-week moving average continues to pressure it lower, see if its lows hold. A close below $18 likely sends SKT to new lows.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
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