5 Top Stock Trades for Thursday: IRBT, AMRN, CGC

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

Top stock trades for Thursday

After a volatile session on Tuesday, U.S. equities posted a robust rebound on Wednesday as hopes rise for a trade deal. Let’s look at a few top stock trades.

Top Stock Trades for Tomorrow No. 1: iRobot (IRBT)

Top Stock Trades for Tomorrow No. 1: iRobot (IRBT)

iRobot (NASDAQ:IRBT) has been hammered from its highs this year, down more than 50%. Now, multi-year support could be giving way, as shares are getting clobbered Wednesday.

The $55 area was a significant mark in 2017 and 2018, but now, shares of IRBT are breaking below it. Above is a weekly chart, showing that IRBT has recovered from its earlier spill toward $50.

But it’s not out of the woods yet. A close below $55 this week would put the recent lows on watch, and below that, the selling could accelerate even more.

Best case for bulls? A sharp rebound by the end of the week. However, for it to garner any long-term momentum, IRBT needs to reclaim its 10-week moving average.

Top Stock Trades for Tomorrow No. 2: Amarin (AMRN)

Top Stock Trades for Tomorrow No. 2: Amarin (AMRN)

Amarin (NASDAQ:AMRN) shares are teetering on $14, a vital level of support over the past few months.

The setup is simple from here. Below $14 and the $12.50 level is on the table. Above $14 and the 50-day moving average is on the table. Until AMRN reclaims the 50-day, bulls will have a hard time with this stock on the long side.

Why’s it a top stock trade? To highlight caution with the name.

Top Stock Trades for Tomorrow No. 3: Canopy Growth (CGC)

Top Stock Trades for Tomorrow No. 3: Canopy Growth (CGC)

For being the leader of the cannabis movement, Canopy Growth (NYSE:CGC) doesn’t look very healthy. At least not from a stock perspective.

At the moment, bulls need to see two things. First, CGC stock must stay above the current low at $20.52. Below that and sub-$20 prices are on the table. Second, they need Canopy to reclaim the 20-day and 50-day moving averages, as well as downtrend resistance (blue line).

If it can’t hurdle these resistance marks, they will continue to squeeze CGC lower and lower. Over $27 puts $29 on the table. Above that and we may see a gap-fill up toward $32.

Top Stock Trades for Tomorrow No. 4: AMC Entertainment (AMC)

Top Stock Trades for Tomorrow No. 4: AMC Entertainment (AMC)

The $12 mark held as firm resistance for AMC Entertainment (NYSE:AMC) in August and September. With Wednesday’s decline amid a broad market rally, AMC is threatening to retest its July lows near $8.60.

If $8.60 holds as support, it could set up AMC as a range-bound trade between $8.50 and $12.

Content is king, huh? Apparently not for AMC. This name does not look pretty on the long side, although moving over $12 makes it much more attractive.

Top Stock Trades for Tomorrow No. 5: American Airlines (AAL)

Top Stock Trades for Tomorrow No. 5: American Airlines (AAL)

American Airlines (NYSE:AAL) hasn’t had an easy run over the past year. However, its stock is trying to turn things around.

Shares are over the significant level of $26, and this month’s low is slightly above last month’s low. That puts a higher low on the table for AAL, a bullish technical development.

Admittedly, the longer term trend is still bearish and AAL does not look all that healthy. But for those compelled on the long side, over $26 may be good for a decent bounce, at least into downtrend resistance and potentially the 50-week moving average. Below $26 and this month’s low is possible.

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/2019/10/5-top-stock-trades-for-thursday-irbt-amrn-cgc/.

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