6 Top Stocks to Trade Tuesday, Including Canopy Growth
The Dow Jones Industrial Average jumped more than 1% while the Nasdaq Composite struggled to stay above breakeven on Friday, finishing 61 basis points higher, as markets head into a three-day weekend. (That’s right, don’t forget to keep your screens off on Monday, unless you just want to get in a little extra chart studying.) Speaking of which, here are the five top stocks to trades for when the markets reopen Tuesday:
Deere (DE)
Click to Enlarge
Shares of Deere
(NYSE:DE) came
under slight pressure Friday, falling just 2.1% despite missing on earnings
expectations and beating on revenue estimates. With shares
hovering right near $165 resistance, Deere would’ve needed a strong
quarter to launch its stock into breakout mode.
Now pulling back, we have to see where support comes into play. Short of Friday marking the short-term low, a test of the 50-day seems likely.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If we get a broader market correction — and perhaps some trade-war worries — we could get DE stock down into this $145 to $148 area. That puts uptrend support, and the 200-day moving average, into play.
- 7 Financial Stocks With Accelerating Growth
That would give investors a low-risk long opportunity should they find DE attractive.
Nvidia (NVDA)
Click to Enlarge
Shares of Nvidia
(NASDAQ:NVDA) were
up big in after-hours trading Thursday evening. The company’s earnings results
and guidance gave bulls confidence, running shares up over
$170. That was a key level in the stock though — and one we outlined earlier
this week.
With shares up just over 2% now, confidence isn’t all that high and the move isn’t all that impressive as NVDA fades off its highs. Bulls want to see to the stock stay over the 21-day moving average now. Below and the 50-day is on the table and possibly a test of uptrend support down below $140.
If the 21-day holds, a run up to $174 is possible. Above that and $200 becomes a possibility again.
Canopy Growth (CGC)
Click to Enlarge
Like Nvidia, the modest post-earnings rally in
Canopy Growth (NYSE:CGC) isn’t
exactly inspiring the bullish spirits on Wall Street. Shares
continue to hold up over this $45 to $46 level, as well as uptrend
support and the 21-day moving average.
So long as that’s the case, CGC can technically move higher. If it closes above $50, it could trigger a move up to the prior highs near $60. Below the 21-day moving average, though, and Canopy Growth stock may need some time to reset.
Applied Materials (AMAT)
Click to Enlarge
A rally from sub-$30 to more than $40 per
share right into the 200-day moving average put bulls in a
poor risk-reward situation with Applied Materials
(NASDAQ:AMAT).
Particularly with the company reporting earnings.
Despite a top and bottom line beat, AMAT stock pulled back after somewhat disappointing guidance. That said, shares are bouncing nicely off the 21-day moving average. Considering the run-up prior to earnings, this price action isn’t all that bad.
Aggressive bulls can buy now and use a close below the 21-day as their stop. Conservative bulls can buy on a potential breakout over the 200-day moving average.
Bears have a play too. If they didn’t like the quarter and don’t like the stock, they can consider shorting AMAT with a stop-loss on a close over the 200-day. More conservative bears can wait for a break of the 21-day.
If they get it, they can look to ride AMAT down
to the 50-day moving average.
Newell (NWL) and XPO Logistics (XPO)
Click to Enlarge
Newell Brands
(NYSE:NWL) (top)
beat on earnings but missed
on revenue estimates for the fourth quarter. Making matters
worse, guidance disappointed.
In all, the report sent shares reeling, down more than 20% Friday. As such, NWL stock remains a no-touch. Its plunge below $18 thrusts it into no man’s land and puts the $15 lows on the table.
This one remains a disaster, just like XPO Logistics (NYSE:XPO), below.
A top and bottom line earnings miss sent XPO spiraling lower Friday, falling more than 12%.
While XPO is rallying off the lows, it’s in no man’s land, too. Like Newell, its 52-week lows are on the table of possibilities, and it’s hard to have much trust in this name until it can get above its 21- and 50-day moving averages.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA.
More From InvestorPlace
- 2 Toxic Pot Stocks You Should Avoid
- Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks?
- 7 Strong Buy Stocks With Over 20% Upside
- 7 Reasons Stock Buybacks Should Be Illegal
Compare Brokers
The post 6 Top Stocks to Trade Tuesday, Including Canopy Growth appeared first on InvestorPlace.