Stocks wavered on Tuesday, as reports signaled that the U.S. may not apply new tariffs on China on December 15th. Still, equities were mixed as a bevy of headlines continue to hit the wires. Let’s look at a few top stock trades in the meantime.
Top Stock Trades for Tomorrow No. 1: Canopy Growth (CGC)
We’ve looked at the daily charts a number of times for Canopy Growth (NYSE:CGC). Let’s look at a weekly one instead.
Investors can see how $15 played a vital role during last month’s meltdown, just as the 200-week moving average is now playing a role as resistance. $22.50 has also acted as a ceiling on CGC.
On the plus side, shares are above the 10-week moving average and downtrend resistance (blue line), the latter of which has been in play since summer.
So what now? I’d love to see a move over $22.50, which could trigger a longer-term breakout. On the downside, let’s see if shares can stay above $17.50. Moving below that level puts the $15 level back on watch.
Top Stock Trades for Tomorrow No. 2: Dave & Buster’s (PLAY)
I’m also using a weekly chart for Dave & Buster’s (NASDAQ:PLAY). After getting hammered from $50 down to $40 in June, shares have been consolidating between $37.50 and $42.50.
That’s a relatively tight range, but it also sets up an excellent trading scenario. Over $42.50 opens the door to PLAY’s major moving averages, between $45 and $48. Above the latter and downtrend resistance (blue line) near $52 is in play.
On the downside, a move below $37.50 could send shares down into no man’s land. There’s a multi-year low down near $29, with a Fibonacci extension near $32.
Top Stock Trades for Tomorrow No. 3: MongoDB (MDB)
MongoDB (NASDAQ:MDB) shares were initially higher after reporting earnings, but those morning gains have since evaporated. In fact, the price action has turned rather ugly on Tuesday.
The stock opened at $144.77, ticked higher by three cents, then plunged lower throughout the session. In doing so, MDB knifed right through its 20-day, 50-day and 200-day moving averages.
It’s really not a good look.
Now, shares face the backside of prior downtrend resistance. If it holds as support, see if MDB can reclaim its major moving averages on the upside. If it can, it puts $145-plus back on the table.
Should support fail to hold, look for a possible test of $115. That area was clear support in September and October. Below there, MDB could fill its gap down toward $105.
Top Stock Trades for Tomorrow No. 4: Peloton (PTON)
For now, PTON continues to put in higher lows (blue line), while struggling with $35. Above $35 could trigger a breakout to $37, where it faces its former highs. Above that and $40 is on the table.
Below uptrend support and the 20-day moving average will be bulls’ next line of defense. Below that and the $29 IPO price is on the table.
Top Stock Trades for Tomorrow No. 5: GameStop (GME)
GameStop (NYSE:GME) has really struggled this year, but the damage was a lot worse in August when shares hit a low of $3.15.
The company will report earnings on Tuesday after the close. Ahead of the results, shares are struggling with the 200-day moving average, while maintaining above the 50-day moving average.
The setup now is simple: Moving over the 200-day moving average could squeeze shares up toward $7.75 to try and fill the June gap. A move below the 50-day at $5.89 could send shares to $5, a pivotal level over the last six months.