We’re getting a very tight trading range this week, with the S&P 500 keeping the damage limited but also not allowing much upside traction. Will stocks resolve higher or lower in the upcoming holiday-shortened week? We’ll know soon enough. With all of that in mind, let’s look at some top stock trades in the meantime.
Top Stock Trades for Tuesday No. 1: MJ ETF (MJ)
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The cannabis trade has been volatile this week, with major gains and major losses taking place. That has created a bumpy ride for the ETFMG Alternative Harvest ETF (NYSEARCA:MJ).
For several days, it looked like the ETF was going to hold up over the 200-week and 10-day moving averages. However, it’s struggling to hold above those marks now, as well as the 161.8% extension.
A move back above the 161.8% could open the door back to $30-plus. Above the current high, and the 261.8% extension is possible up near $36.
If the MJ ETF moves below Friday’s low, a dip to $20 is possible — with the 10-week and 50-day moving averages in play below that.
Top Stock Trades for Tuesday No. 2: Newell Brands (NWL)
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Newell Brands (NASDAQ:NWL) isn’t trading well on earnings, down almost more than 7% on Friday.
The stock made a very clear attempt to reclaim the 200-week moving average, but failed to do so. That leaves it vulnerable to lower prices, in my opinion. If shares take out Friday’s low, look for a test of the 10-week and 50-day moving averages.
If that fails, a longer-term dip to the 21-week moving average and $21 level could be in order.
On the upside, however, look for NWL to reclaim the 200-week moving average, followed by a gap-fill up toward $26. Above puts the recent high near $27 in play, followed by a possible move to the 161.8% extension.
Top Stock Trades for Tuesday No. 3: CIIC Merger (CIIC)
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CIIC Merger (NASDAQ:CIIC) has been an interesting one lately, as shares consolidate in a tight range.
We’re getting multiple inside days in row, as the 50-day moving average and downtrend resistance (blue line) continue to keep a lid on CIIC stock. A move over these marks puts $30 resistance in play.
If CIIC stock can clear $30, it could put the 61.8% retracement of the current range on the table, up near $32.50. Above opens the door to a retest of the highs near $37.
On the downside, though, a break of the 10-week moving average could put the $25 to $25.50 area in play.
Top Trades for Tuesday No. 4: Bionano Genomics (BNGO)
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Bionano Genomics (NASDAQ:BNGO) is ripping higher on Friday, finishing 17% higher on the day. The move thrust shares over $12.50 resistance and at least temporarily sent the stock to new highs.
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The stock has been strong for several months, then gave us a sharp pull to the 10-day moving average — the first setup we like for a bounce. We got the initial bounce, but it was followed mostly by sideways consolidation, which is just fine.
Traders could have played the bounce and bailed during consolidation if they so chose. However, the stock continued to ride the 10-day moving average, which shows that bulls are engaged and accumulating on the dip.
When the stock went weekly-up over $12.70, traders were looking for a move back toward the $13.85 high. A few traders surely booked some profit into that zone. If they kept a partial position, they’re likely looking for a move up toward $15 and potentially up to the 161.8% extension near $16.50.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
