It was a choppy week in the stock market, before investors headed home for a long three-day weekend. Let’s use that extra day to look at some top stock trades for next week.
Top Stock Trades for Tomorrow No. 1: Alibaba (BABA)
BABA stock ran into a roadblock around $220, but held the backside of prior downtrend resistance (blue line) ahead of the print. After Friday’s fall though, shares lost this level, as well the 20-day moving average.
Now down near $200, shares are coming up into the 50-day moving average. Aggressive bulls may consider buying this dip, giving the quality of the earnings. However, conservative buyers may consider waiting.
That’s as potentially stronger support near $194 comes into play with the 200-day moving average. On a rebound, I want to see shares reclaim downtrend resistance.
Top Stock Trades for Tomorrow No. 2: Beyond Meat (BYND)
Beyond Meat (NASDAQ:BYND) had a relatively quiet week. The stock continues to form a narrowing wedge after its big post-earnings rally.
That has bulls optimistic that a break higher may come into play, while bears are hoping the stock runs out of momentum. On the downside, keep an eye on $130. Below this level and below last week’s low at $127.21 could spell trouble for the bulls.
On the upside, a move over last week’s high at $147.55 puts a potential rally to $160 in play. I do like this trade on a break of either level, but prefer the long side for two reasons.
First, earnings are out of the way and the reaction was bullish. Second, there are fewer hurdles in the way on a breakout as opposed to a breakdown, with the 20-day moving average coming into play at $122.40.
Top Stock Trades for Tomorrow No. 3: Canopy Growth (CGC)
Friday’s rally is interesting. On the one hand, CGC’s move is impressive and the stock is rotating over last month’s high. I love that. But at the same time, it’s coming into the 200-day moving average near $20 and the 200-week moving average near $21.80.
That’s not a great scenario, although a rally over these market could put the mid-$20s in play. Keep these levels in mind on the upside. On the downside, watch $18.25. That was the April high, and a dip to this level that holds as support could be a buying opportunity.
Top Trades for Tomorrow No. 4: Cronos Group (CRON)
Sticking with the cannabis industry, Cronos Group (NASDAQ:CRON) is moving nicely too. Shares are also rotating over last month’s high, but could have a bit more room to run.
Watch the $6.70 area for possible support on a pullback. On the upside, look for a gap-fill up toward $7.15, with the 200-day moving average and the $8 mark acting as more significant upside marks.
This group can move intensely in both directions. But using levels can help pinpoint when the move is real vs. a fake-out. Have a happy Memorial Day weekend.