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6 Top Stocks to Trade Tuesday, Including Canopy Growth

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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.

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.

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.

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The post 6 Top Stocks to Trade Tuesday, Including Canopy Growth 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.


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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