5 Top Stock Trades for Tuesday: CGC, T, ROKU

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

With no reason to sell off, why wouldn’t stocks continue higher on Monday? Let’s look at a few top stock trades for Tuesday, when earnings season will begin with the banks.

Top Stock Trades for Tomorrow No. 1: Canopy Growth (CGC)

Top Stock Trades for Tomorrow No. 1: Canopy Growth (CGC)
Source: Chart courtesy of StockCharts.com

The cannabis space is far from being out of the woods, but there are two names in the group that I have liked recently, one of which is Canopy Growth (NYSE:CGC).

Canopy shares are hitting their highest level since October, as shares push higher on Monday. In doing so, CGC is reclaiming both the $22 level and the 100-day moving average.

It might get there in a few days or it might take a few months, but a rally up and over $25 into the upper-$20s shouldn’t be out of the question now.

On the downside, it would be best for CGC to hold $21.50 as support. Below that level and bulls will need to see the 50-day and uptrend support (purple line) need to hold as support.

Top Stock Trades for Tomorrow No. 2: AT&T (T)

Top Stock Trades for Tomorrow No. 2: AT&T (T)
Source: Chart courtesy of StockCharts.com

Resistance continues to hold near $39 for AT&T (NYSE:T), while Monday’s pullback is sending T stock right into the 50-day moving average and uptrend support (blue line). This one is simple now.

Below uptrend support and the 100-day moving average is in play. Below that and the $36 to $36.50 area is possible. If current support holds, look for a rebound back up to $39. If it can get over that level, AT&T could be looking at $40-plus.

Top Stock Trades for Tomorrow No. 3: Roku (ROKU)

Top Stock Trades for Tomorrow No. 3: Roku (ROKU)
Source: Chart courtesy of StockCharts.com

While many growth stocks have been rallying, Roku (NASDAQ:ROKU) has been struggling. Shares did reverse off $127 support on Monday, but still face downtrend resistance (blue line) overhead.

Falling below the 20-day and 50-day moving averages does not bode well for momentum, but Roku isn’t completely stuck.

A move back over downtrend resistance and the 50-day moving average could trigger a rally up to $150-plus. However, a move below $127 puts the $117 to $120 area on watch, with the 200-day moving average just below.

Top Stock Trades for Tomorrow No. 4: Aphria (APHA)

Top Stock Trades for Tomorrow No. 4: Aphria (APHA)
Source: Chart courtesy of StockCharts.com

At the top, I mentioned that I liked two cannabis stocks. CGC was the first and Aphria (NYSE:APHA) is the other. The latter isn’t moving quite as nicely as the former, but it’s showing breakout potential.

Rallying into the 100-day moving average and downtrend resistance (blue line) now, APHA stock has a chance to power higher and draw in buyers.

A move over $5.50 would add to its momentum and put the declining 200-day moving average in play. If it can’t hurdle current resistance, see that it holds up over the 50-day moving average. Below that level puts $4.50 back on the table.

Top Stock Trades for Tomorrow No. 5: Invitae (NVTA)

Top Stock Trades for Tomorrow No. 5: Invitae (NVTA)
Source: Chart courtesy of StockCharts.com

What a wild ride it has been with Invitae (NASDAQ:NVTA). Shares are surging higher on Monday after an update from management on Sunday night regarding 2019 results and 2020 guidance.

The news sent shares higher by about 10%, with many longs wondering if this is the start of something big or if it will ultimately deflate like the last pop.

The stock is back over $17, while uptrend support (blue line) continues to hold. Shares are clearing downtrend resistance (purple line), and while investors will be looking at $20, that’s not the level to watch. Instead, it’s the 50-week moving average at $20.55.

Over that level and NVTA can really start to find its momentum.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU, T, APHA and NVTA.


Article printed from InvestorPlace Media, https://investorplace.com/2020/01/5-top-stock-trades-for-tuesday-cgc-t-roku/.

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