US Markets

4 Top Stock Trades for Friday: CSCO, UBER, CGC and ROKU

Investors took pause on Thursday, as equities cooled off a bit and a few key earnings reports rolled in. Let’s take a closer look at a few top stock trades going into the end of the week.

Top Stock Trades for Tomorrow No. 1: Cisco Systems (CSCO)

Cisco Systems (NASDAQ:) is getting hammered after reporting earnings. Shares are down more than 7% and have been for most of session.

Below $46 does not bode well for CSCO. That area has been support since August. A series of lower highs (blue line) was squeezing Cisco lower, but a positive earnings reaction could have ended that trend.

Instead, support is giving way, opening the door to the 23.6% retracement at $43.55. If that doesn’t hold, a decline into the $42.75 area could be next.

On the upside, see if CSCO reclaims $46. Above that level, the 50-day moving average is possible.

Top Stock Trades for Tomorrow No. 2: Uber (UBER)

Uber (NYSE:) stock is just a hair above its 52-week lows. When Uber reported earnings earlier this month, we noted the decisive move the stock made through its recent lows.

That set the tone for a collapse down to $25.58, the current all-time low. Just above that figure now, Uber is setting up for a make-or-break situation.

Either the recent low holds as support and Uber rebounds or it doesn’t and shares continue to break down. The stock is down almost 50% from the 52-week high of $47.08, and investors seem to want nothing to do with Uber.

A look-below-and-fail is possible — where Uber stock briefly breaks to new lows and snaps back — but until shares are able to reclaim the $28.50 area, Uber looks unattractive on the long side.

Top Stock Trades for Tomorrow No. 3: Canopy Growth (CGC)

Just recently, we thought Canopy Growth (NYSE:) could be putting in a bottom. Shares were finding support near $18 for about a month, and after a big rally, had actually taken out downtrend resistance (blue line).

Now though, shares are being walloped on earnings, down more than 13%. The move sends Canopy to new 52-week lows and well below recent support.

This one is a no-touch for me, as it is firmly in no man’s land.

If it can reclaim $16.75 — a significant area on the multiyear chart — then perhaps we could get a rebound back up to the 200-week moving average near $19.70 (not shown above). But wait to see the strength first, there’s no need to be a hero.

Top Stock Trades for Tomorrow No. 4: Roku (Roku)

What a beast Roku (NASDAQ:) has been. The stock gave short-term traders an excellent red-to-green setup on Thursday morning, as it continues to move well from its post-earnings low.

The August gap-up near $118 held on the post-earnings gap down last week. Since then, shares are up about $30 apiece.

Now, $150 could either act as the brakes to the recent move or the accelerator back up to $160-plus. If Roku pushes higher, it would be encouraging to see $150 act as support on a pullback. If $150 acts as resistance now, see where buyers step in, perhaps at the 20-day moving average.

Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU. 

The post appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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