Stocks surged higher on Monday, with hopes for a vaccine growing. However, many coronavirus stocks took it on the chin. That said, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Beyond Meat (BYND)
Beyond Meat (NASDAQ:BYND) was volatile on Monday. Shares gapped up by 4.7% to start the day, fell 14.2% from the highs and spiked 21% from the lows before settling down.
I need to see some clarity before getting long on BYND stock. Specifically, shares need to clear $160. Not only was that the breakout level from September, but it would also put Beyond Meat over the 10-day, 20-day and 50-day moving averages. Finally, it would put it over downtrend resistance (blue line).
Even better would be a move above Monday’s high at $170.80. That would open up a move back to the October highs in the $190s.
A break of Monday’s low and the October lows near $140 would put $120 support and the 200-day moving average on the table.
Top Stock Trades for Tomorrow No. 2: McDonald’s (MCD)
Speaking of McDonald’s, let’s look at the chart. Not only was it caught up in some plant-based confusion with Beyond Meat, but it reported earnings before the open.
Like BYND stock, shares have been volatile. McDonald’s gapped up toward $230 resistance, flirted with a break of $210 support and is now less than 1% away from Friday’s closing price.
Also like Beyond, I want more clarity with MCD stock. Specifically, I want to see if shares can reclaim the 10-day and 50-day moving averages. Above the latter and Monday’s high is in play near $228.
Above $228 puts $230 resistance back on the table. If McDonald’s clears that area, the 123.6% extension is possible up near $236.
On the downside, a break of $210, the 100-day moving average and Monday’s low at $207.17 puts the $200 mark and the 200-day moving average on the table.
Top Stock Trades for Tomorrow No. 3: Canopy Growth (CGC)
After a handful of strong sessions, Canopy Growth (NYSE:CGC) burst even higher on Monday. At its highs, shares ripped 14.7% after the company reported earnings.
From last Wednesday’s low, the stock has rallied almost 30%.
The move initially took out the prior 2020 high, but CGC stock was unable to sustain above that $26 area. If shares continue to pullback, let’s see if $22 can act as support. That’s assuming the 10-day moving average doesn’t catch up to the price first.
Above $26, and Monday’s high at $26.95 is possible. Above that and eventually bulls will start sniffing for a gap fill back up toward $32 from August 2019.
Top Stock Trades for Tomorrow No. 4: JPMorgan (JPM)
Coronavirus stocks were hit hard, while economically-sensitive stocks ripped. JPMorgan (NYSE:JPM) was among the stocks rallying hard, up 13% to end the day.
The big gap-up helped launch JPM stock over $105 resistance and the 50-week moving average. That mark had served as notable resistance all three times it has been tested since the pandemic began.
Perhaps more importantly though, shares cleared $110 resistance and the post-pandemic highs from June at $113.60. From here, I would love to see JPM stock hold above the $110 to $114 area. Below and the $105 area needs to hold as support.
On the upside, it would take a notable rally, but it would be great to see the stock fill the gap between $127 and $132.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.