On Tuesday we saw stocks open higher and turn lower. On Wednesday though, it was just the opposite. Equities took any early stumble in morning trade, but were able to shake off the losses and turn higher. While the rhetoric hasn’t been great, the market has been holding up so far this month. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow #1: VeevaVeeva (NASDAQ:VEEV) reported some awesome quarterly results, but saw its stock selloff despite the solid update.
In any regard, $155 held as support, a key level that’s been in play for months now. On the downside, that is now the level to watch. On the upside, see that VEEV can reclaim the 50-day moving average.
If it can and it takes out Wednesday’s high, look for a potential run to $175. Above that and new highs are possible.
Top Stock Trades for Tomorrow #2: Canopy Growth
While the rally is impressive so far today, CGC investors should realize the stock is still locked in a downtrend. A move over $25 would launch CGC out of that channel, but a close over the 20-day would be even more promising.
If it can do that, a gap-fill back up toward $32 is on the table. If it remains channel-bound, new lows are possible.
Top Stock Trades for Tomorrow #3: Bank of AmericaBank of America (NYSE:BAC) and other bank stocks were quick to rally off their opening lows on Wednesday, jumping higher on the day despite worries over rates, yield curves and recessions.
It’s a good sign for bulls, particularly if the group can build any sort of upside momentum. BAC stock is flirting with such a move, as it peeks its head over downtrend resistance (blue line). The stock has been putting in lower highs all month and an end to that trend would be great news.
If bulls can sustain some upside momentum, it may take BAC to the 200-day moving average near $28, and possibly higher. Remember, a month ago BAC stock was trading near $31.
The MACD is turning in bulls’ favor (blue circle), but a close below $26 would be a huge red flag.
Top Stock Trades for Tomorrow #4: Tiffany
After turning lower in morning trade, Tiffany & Co. (NYSE:TIF) is putting together an impressive post-earnings reversal. However, bulls need to see TIF close north of $88.
That will put Tiffany over the 200-week and 10-week moving averages, as well as current downtrend resistance (blue line). Over this range puts the 50-week moving average in play.
If resistance holds TIF in check, look to see that $80 holds as support. Below this level opens up the door to the low-$70s.
Top Stock Trades for Tomorrow #5: Coty
Up 5% on Wednesday, Coty (NYSE:COTY) is enjoying a decent post-earnings rally. However, it does find itself at an important juncture. Shares need to close over $9.50, which is both a significant level over the past year, as well as the 20-day moving average.
Right in the middle of its range, COTY has been as low at $5.80 and as high as $14. A move over $9.50 puts its 200-day moving average on the table and can allow investors to start repairing some of COTY’s technical damage, putting higher prices in play if it can build support on top of current resistance.
If price is rejected near $9.50, it may keep downtrend resistance and lower prices in play.