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4 Top Stock Trades for Tuesday: AMD, BBY, GOGO, DHR

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

top stock trades - 4 Top Stock Trades for Tuesday: AMD, BBY, GOGO, DHR

The S&P 500 gapped up and held most of its gains throughout Monday’s session. The move comes on positive potential developments around the novel coronavirus. With that in mind, let’s look at a few top stock trades for Tuesday. 

Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)

Daily chart of AMD stock price.
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Advanced Micro Devices (NASDAQ:AMD) continues to do a solid job of consolidating its recent gains.

Shares are now putting in a series of higher lows as uptrend support (blue line) and the 20-day moving average guide it higher. What we want to see now is a rotation over the $88 area. That’s where AMD topped out earlier this month.

If shares can close over this area, it puts the 261.8% extension in play at $95.71. And if AMD can get to this point, the odds are pretty good that it will get to $100.

On a close below uptrend support and the 20-day moving average, first watch the August low at $76.10. Below that mark and perhaps we see a test of the 50-day moving average and the gap-fill area near $70.

Top Stock Trades for Tomorrow No. 2: Best Buy (BBY)

top stock trades for BBY
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Best Buy (NYSE:BBY) is scheduled to report earnings before the open on Tuesday and man, this stock has been blazingly hot. 

After bottoming near $50 in March, shares chugged higher, eventually gapping up toward $100 in July but stayed below that mark for a few weeks. Finally BBY stock crawled through this key level, gravitating higher until it hit the 161.8% extension on Monday. 

Best Buy shares remain quite overbought according to the RSI reading (blue circle), but that’s been the case more a month now. If shares continue higher on earnings, see if Best Buy can get to the two-times range extension at $133.29. 

On a correction, see if uptrend support (blue line) holds as support. Below puts the 20-day moving average in play, which was support in July before the gap-up over $92. On a large move lower, see if we eventually get a retest of this $90 to $92 breakout area. 

Top Stock Trades for Tomorrow No. 3: Gogo (GOGO)

top stock trades for GOGO
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Gogo (NASDAQ:GOGO) still needs some time it seems, but the charts are looking better and better by the day.

We have uptrend support guiding shares higher, as it contends with $4 resistance and the 200-day moving average. For now, these levels are doing their jobs and holding as resistance.

Keep in mind, $4 was also notable support in 2019. If it can clear this area — and particularly if it does so with authority — bulls may really harness control. It will ultimately have $5-plus on the radar for many investors.

On the downside, though, look for the 50-day moving average to hold as support. Below may put the July low in play near $2.75, as well as the 23.6% retracement at $2.72.

Top Stock Trades for Tomorrow No. 4: Danaher (DHR)

top stock trades for DHR
Click to Enlarge
Source: Chart courtesy of StockCharts.com

What a solid setup we have in Danaher (NYSE:DHR) here. 

On the upside, there is resistance near $208 to $209. A breakout over this level will put the two-times range extension in play up at $218.25. 

On the downside, however, shares are riding the 20-day moving average and uptrend support higher (blue line). This is known as an ascending triangle, a bullish technical setup where rising support presses a stock up against a static level of resistance. 

This specific setup succeeds if we get a breakout over the $208 to $209 area. It fails if support breaks down, meaning DHR stock closes below the 20-day moving average and uptrend support. 

A close below last week’s low at $204.35 may be enough to get short-term bulls to bail. In any regard, it will likely put the August low in play at $199.30, five cents below the 161.8% extension. Below that and the 50-day moving average is next. 

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret is long DHR as a trade and GOGO as an investment.


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/4-top-stock-trades-for-tuesday-amd-bby-gogo-dhr/.

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