5 Top Stock Trades for Wednesday: RL, GPRO, CRON

Here are the top stock trades we’re watching for Wednesday morning

top stock trades - 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

top stock trades for Ralph Lauren
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Source: Chart courtesy of StockCharts.com

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.

I’m watching the $101 area, near the 200-week moving average. Below $100 and the 2018 lows near $95 are on the table.

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

top stock trades for GPRO
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Source: Chart courtesy of StockCharts.com

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

top stock trades for CRON
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Source: Chart courtesy of StockCharts.com

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

top stock trades for CRON
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Source: Chart courtesy of StockCharts.com

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

top stock trades for SKT
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Source: Chart courtesy of StockCharts.com

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.


Article printed from InvestorPlace Media, https://investorplace.com/2019/05/5-top-stock-trades-rl-gpro-cron-skt-ttwo/.

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