Stocks are gravitating higher, but all eyes are on the G20 summit. Not many investors are looking for a trade resolution when President Trump meets with President Xi, but progress on the situation will likely be good news for bulls come Monday. That said, all it takes is some escalation or an errant tweet to send markets into a tailspin. Let’s look at some top stock trades based on Friday’s action.
Top Stock Trades for Tomorrow #1: Constellation Brands
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Shares of Constellation Brands (NYSE:STZ) are rallying more than 5% after the company’s better-than-expected earnings results. The move is carrying STZ through a few key areas. Mainly, it’s pushing right through the 10-week and 50-week moving averages.
The stock’s 61.8% retracement for the one-year range is right around $201. If STZ can push through that, downtrend resistance (blue line) is next. Should STZ get through both of these marks, perhaps it can run to range resistance up near $225.
If the stock pulls back, let’s first see if either the 10-week or 50-week moving average can buoy it. If not, perhaps uptrend support (purple line) can.
Despite STZ’s rally, it’s not helping Canopy Growth (NYSE:GCG), which is down about 1% on the day.
Top Stock Trades for Tomorrow #2: Citigroup
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Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM) and other bank stocks are all rallying after the Fed passed a large number of higher dividends and buybacks.
In Citigroup’s case, the stock is showing signs of life. On the upside, I am looking to see if C can run up to $74 resistance. If it pushes through, new highs are on watch.
On the downside, see if C can hold the backside of prior downtrend resistance (blue line) and the 20-day moving average.
Top Stock Trades for Tomorrow #3: Uber
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Finally, longs are getting paid in Uber (NYSE:UBER). The stock is bursting through its $45 IPO price after spending much of the month flirting with such a move.
Now above this key level, let’s keep it very simple. Above $45 and longs are okay. Back below this mark and it’s likely to be a “risk-off” situation.
Top Stock Trades for Tomorrow #4: Cisco
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In our Nasdaq Today column on Thursday, we highlighted the weakness in Cisco (NASDAQ:CSCO). But I didn’t expect it to spill into Friday’s session in this manner, down 3%.
The move plunges CSCO below its 20-day and 50-day moving averages. Short of it reclaiming the 50-day on Monday, this one looks primed to test range support near $51.50 to $52.
Below that area and the 200-day moving average is likely next.
Top Stock Trades for Tomorrow #5: Sarepta
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Sarepta Therapeutics (NASDAQ:SRPT) surged on Friday, tacking on gains of more than 15% on the day. We also saw strength in other names like Invitae (NASDAQ:NVTA), which rallied 9% Friday and gave InvestorPlace readers a great buying opportunity just seven days ago.
As for SRPT, shares are right on the cusp of a notable price range between $148 and $150.
The stock did a great job breaking out over $125 and retesting that mark earlier this month. It’s also putting in a nice series of higher lows (purple line). I would love to see SRPT hold above $150 before continuing higher toward $160.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVTA.
