US Markets
AMD

4 Top Stock Trades for Tuesday: AMD, BBY, GOGO, DHR

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

The S&P 500 gapped up and held most of its gains throughout Monday’s session. The move comes on positive potential developments around the novel coronavirus. With that in mind, let’s look at a few top stock trades for Tuesday. 

Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)

Daily chart of AMD stock price.
Click to Enlarge

Source: Chart courtesy of StockCharts.com

Advanced Micro Devices (NASDAQ:AMD) continues to do a solid job of consolidating its recent gains.

Shares are now putting in a series of higher lows as uptrend support (blue line) and the 20-day moving average guide it higher. What we want to see now is a rotation over the $88 area. That’s where AMD topped out earlier this month.

If shares can close over this area, it puts the 261.8% extension in play at $95.71. And if AMD can get to this point, the odds are pretty good that it will get to $100.

On a close below uptrend support and the 20-day moving average, first watch the August low at $76.10. Below that mark and perhaps we see a test of the 50-day moving average and the gap-fill area near $70.

Top Stock Trades for Tomorrow No. 2: Best Buy (BBY)

top stock trades for BBY
Click to Enlarge

Source: Chart courtesy of StockCharts.com

Best Buy (NYSE:BBY) is scheduled to report earnings before the open on Tuesday and man, this stock has been blazingly hot. 

After bottoming near $50 in March, shares chugged higher, eventually gapping up toward $100 in July but stayed below that mark for a few weeks. Finally BBY stock crawled through this key level, gravitating higher until it hit the 161.8% extension on Monday. 

Best Buy shares remain quite overbought according to the RSI reading (blue circle), but that’s been the case more a month now. If shares continue higher on earnings, see if Best Buy can get to the two-times range extension at $133.29. 

On a correction, see if uptrend support (blue line) holds as support. Below puts the 20-day moving average in play, which was support in July before the gap-up over $92. On a large move lower, see if we eventually get a retest of this $90 to $92 breakout area. 

Top Stock Trades for Tomorrow No. 3: Gogo (GOGO)

top stock trades for GOGO
Click to Enlarge

Source: Chart courtesy of StockCharts.com

Gogo (NASDAQ:GOGO) still needs some time it seems, but the charts are looking better and better by the day.

We have uptrend support guiding shares higher, as it contends with $4 resistance and the 200-day moving average. For now, these levels are doing their jobs and holding as resistance.

Keep in mind, $4 was also notable support in 2019. If it can clear this area — and particularly if it does so with authority — bulls may really harness control. It will ultimately have $5-plus on the radar for many investors.

On the downside, though, look for the 50-day moving average to hold as support. Below may put the July low in play near $2.75, as well as the 23.6% retracement at $2.72.

Top Stock Trades for Tomorrow No. 4: Danaher (DHR)

top stock trades for DHR
Click to Enlarge

Source: Chart courtesy of StockCharts.com

What a solid setup we have in Danaher (NYSE:DHR) here. 

On the upside, there is resistance near $208 to $209. A breakout over this level will put the two-times range extension in play up at $218.25. 

On the downside, however, shares are riding the 20-day moving average and uptrend support higher (blue line). This is known as an ascending triangle, a bullish technical setup where rising support presses a stock up against a static level of resistance. 

This specific setup succeeds if we get a breakout over the $208 to $209 area. It fails if support breaks down, meaning DHR stock closes below the 20-day moving average and uptrend support. 

A close below last week’s low at $204.35 may be enough to get short-term bulls to bail. In any regard, it will likely put the August low in play at $199.30, five cents below the 161.8% extension. Below that and the 50-day moving average is next. 

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret is long DHR as a trade and GOGO as an investment.

The post 4 Top Stock Trades for Tuesday: AMD, BBY, GOGO, DHR 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.

In This Story

AMD BBY GOGO DHR

Latest Markets Videos

InvestorPlace

InvestorPlace is one of America’s largest, longest-standing independent financial research firms. Started over 40 years ago by a business visionary named Tom Phillips, we publish detailed research and recommendations for self-directed investors, financial advisors and money managers.

Learn More