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)
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)
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)
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)
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.
