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4 Top Stock Trades for Tuesday: SHOP, UBER, CRWD, HOG

Here are the top stock trades we’re watching for Tuesday

Banks and the bond market were closed for Columbus Day, although the stock market was open for business. That said, it was a quiet day on Wall Street as investors prepare for earnings. Let’s look at a few top stock trades.

Top Stock Trades for Tomorrow No. 1: Shopify (SHOP)

Top Stock Trades for Tomorrow #1: Shopify (SHOP)

Shopify (NASDAQ:SHOP) has pieced together a very impressive move over the past few weeks. After bottoming near $286 in late September, SHOP stock has quickly rallied almost $60 per share, now at $345.

This one remains pricey from a valuation perspective and “only” came down 30% from the highs. But that outperformed many of its high-growth peers. Unfortunately for many and fortunately for some, Shopify never worked its way down to the $265 area to test its 50% retracement and 200-day moving average.

That’s how you know it has been a strong candidate.

In any regard, it’s back over the 20-day moving average and is just shy of its 50-day moving average and 78.6% retracement near $347. If traders caught this one before the move and don’t plan to hold for the long term, they might consider reducing their stake into possible resistance.

Over $347 and the $360 mark is on the table. If resistance holds, see if the 20-day moving average buoys SHOP on a pullback. Below that and $300 could be a possible retest.

Top Stock Trades for Tomorrow No. 2: Uber (UBER)

Top Stock Trades for Tomorrow No. 2: Uber (UBER)

Unlike Shopify, Uber (NYSE:UBER) has never really had much mojo as a public company. On the plus side, though, shares are pushing through the $30.75 area, which had been resistance earlier this month.

If shares can clear the 78.6% retracement and the declining 50-day moving average, a move up to the 61.8% retracement at $35.50 and $36 resistance could be in the cards. Short of a big-time breakout, though, I expect that level to hold as resistance when tested.

On the downside, let’s see if Uber can put in a higher low above $28.58, showing a possible turning point for the bulls.

Top Stock Trades for Tomorrow No. 3: Crowdstrike (CRWD)

Top Stock Trades for Tomorrow No. 3: Crowdstrike (CRWD)

Crowdstrike (NASDAQ:CRWD) is getting killed on Monday and there’s no other way to put it, down more than 10%.

Shares are flirting with a major breakdown now. In late September, the $52 area held as support, sending CRWD stock up to nearly $70. After pulling back again though, this support level may be called upon shortly.

Below last month’s low of $51.61, there’s a lot of room before the stock’s IPO price of $34 comes into play. On a rebound, see how CRWD handles the $70 level.

Top Stock Trades for Tomorrow No. 4: Harley Davidson (HOG)

Top Stock Trades for Tomorrow No. 4: Harley Davidson (HOG)

Harley Davidson (NYSE:HOG) has been a frustrating play for investors lately. It has chopped around the $32.50 to $36.50 area over the last six weeks with little regard for its 50-day and 200-day moving averages.

However, it has been forming a downward channel, marked by lower lows and lower highs. A move over $35.50 could break the channel, sending shares to range resistance near $36.50 and possibly the 50% retracement near $37.

If channel resistance holds, look for a break below the two-day low and 20-day moving average near $34.50. That may send HOG to the 50-day moving average and possibly the bottom of its range.

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/2019/10/4-top-stock-trades-for-tuesday-shop-uber-crwd-hog/.

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