4 Top Stock Trades for Tuesday: ZM, CLX, AAPL, CGC

top stock trades - 4 Top Stock Trades for Tuesday: ZM, CLX, AAPL, CGC

Despite futures opening lower on Sunday night, stocks caught a decent boost on Monday. And that’s even with the election just around the corner. That said, let’s look at a few top stock trades to start the week. 

Top Stock Trades for Tomorrow No. 1: Zoom Video (ZM)

top stock trades for ZM
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Source: Chart courtesy of StockCharts.com

Zoom Video (NASDAQ:ZM) caught my attention on Monday, as the stock’s skid continues. Shares are down for the fourth-straight session, but are now declining right into a key support level.

The 50-day moving average and the 10-week moving average (not shown on the daily chart above but highlighted in the link) have been support ever since this explosive rally got underway a few quarters ago.

Eventually all trends end, so I don’t know if Zoom Video will find its footing here around $445 to $450. However, if it does, a rebound back toward $500 and the 20-day moving average could be in the cards. That’s particularly true with surging coronavirus cases.

If support fails, though, look to see if shares dip below $400. That could put the 100-day moving average in play. That’s potentially followed by a full gap fill down toward $325.

Top Stock Trades for Tomorrow No. 2: Clorox (CLX)

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

Zoom is a coronavirus stock to watch, and so is Clorox (NYSE:CLX). Regarding the latter, the company just issued solid quarterly results on Monday.

Support at $205 continued to hold ahead of the print. With a post-earnings rally, shares are looking better, but CLX stock couldn’t hold the highs of the day, even with a broader-market rally.

Shares are reclaiming the 50-day moving average on Monday, but I want to see it back above the 100-day moving average as well. If it can do that, look for a rotation back over the October high near $223.

That opens the door to a run back toward the highs near $240.

On the downside, however, a break below the 50-day moving average puts a post-earnings gap-fill in play, followed by the $205 level. Below the latter and the 200-day moving average is possible.

Top Stock Trades for Tomorrow No. 3: Apple (AAPL)

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

Like the rest of big tech, Apple (NASDAQ:AAPL) continues to struggle. Currently, shares are trading down into the 100-day moving average after earnings failed to inspire investors.

We’re at an interesting juncture, now. If shares lose the 100-day, it puts the $103 to $105 area in play. Below that, and the gap-fill from July is possible, down toward $96.

On the upside, Apple bulls need to see the stock take out the 50-day moving average and downtrend resistance (blue line). Above that opens the door to the October high near $125.

Above puts the all-time high in play near $138.

Top Trades for Tomorrow No. 4: Canopy Growth (CGC)

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

Are cannabis stocks rallying on the assumption that a Democrat will win the election? I don’t know, but I do know that Canopy Growth (NYSE:CGC) is trading much better on the long side.

With Monday’s 11% rally, shares are rotating above the October high, as well as channel resistance.

Now, I want to see if shares fall back within the channel, or if CGC can push up to the May high near $22. This is also the post-coronavirus selloff high.

Above $22 opens the door to the 2020 highs near $26.

On the date of publication, Bret Kenwell held a long position in AAPL and ZM.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2020/11/4-top-stock-trades-for-tuesday-zm-clx-aapl-cgc/.

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