4 Top Stock Trades for Tuesday: TSLA, NKE, MU, CGC

Top stock trades - 4 Top Stock Trades for Tuesday: TSLA, NKE, MU, CGC

As the omicron variant continues to spread, the stock market is having trouble pushing higher. The headwinds are building, but the S&P 500 is weathering the storm. With that in mind, let’s look at a few top stock trades as we kick off the holiday-shortened trading week.

Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)

Daily chart of TSLA stock
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Source: Chart courtesy of TrendSpider

Tesla (NASDAQ:TSLA) stock could be shaping up as an opportunity. Shares traded lower on the day, which is no surprise for anyone that’s bothered to look at growth stocks lately.

However, the stock has finally filled that gap down at $910 and retested the prior highs at $900. Furthermore, we also have the 21-week moving average and 200-unit moving average on the four-hour chart nearby as well.

It’s worth noting that the chart here is on a four-hour scale.

A bounce from this area could ignite a move back $950 to $970 area, where Tesla stock finds its declining short-term daily moving averages. Above that, and we could be talking about $1,000 again.

Top Stock Trades for Tomorrow No. 2: Nike (NKE)

Top stock trades for NKE
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Source: Chart courtesy of TrendSpider

Nike (NYSE:NKE) reported earnings after the close. Recently, though, the stock hasn’t been trading that well, down in six-straight sessions. Will earnings be enough? We’ll find out soon.

On the downside, let’s see if shares tag the 200-day and 50-week moving averages. That could give bulls a dip-buying opportunity. If Nike pushes lower, it could put that $145 to $148 zone in play.

This was support back in October, as well as the prior breakout zone this summer. A break of this level will be a bad look for Nike.

On the upside, however, I’d love to see Nike get back above the 21-day and 50-day moving averages. That will help shape up the trend and put the highs back in play.

That seems like a tough ask, but really it would just erase the losses over the prior six sessions.

Top Stock Trades for Tomorrow No. 3: Micron (MU)

Top stock trades for MU
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Source: Chart courtesy of TrendSpider

Like Nike, Micron (NASDAQ:MU) also reported earnings after the close. Unlike Nike, though, Micron hasn’t been trading all that bad.

Shares are consolidating along the 50-week moving average while holding the 200-day.

If the stock moves lower and below these measures, let’s see if the 50-day moving average is support. Otherwise, we’ll need to see how it handles the $75 to $77 area.

On the upside, however, I want to see Micron power through the November high at $87.71. That would give bulls a monthly-up rotation. Above $89.05, and we can start talking about $95 again, then, of course, the obvious $100 level.

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

Top stock trades for CGC
Click to Enlarge
Source: Chart courtesy of TrendSpider

Last but not least we have Canopy Growth (NASDAQ:CGC). The stock is hitting multi-year lows and is one we haven’t talked about in quite some time.

Here is a weekly chart, highlighting the steep decline this one has been in. From the peak earlier this year, Canopy Growth has declined in 10-straight months and is working on its 11th-straight monthly decline. That’s incredibly painful!

However, CGC stock is now undercutting the 2020 low and doing so with some pretty big divergence on the RSI reading (blue arrow on the top of the chart).

In turn, let’s see if Canopy Growth can reclaim $9, letting bulls initiate a long position against this week’s low.

That could quickly put $10-plus in play, followed by the declining 8- and 10-day moving averages. Above that, and the 21-week moving average is in play, which was resistance earlier this quarter near $15.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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

Article printed from InvestorPlace Media, https://investorplace.com/2021/12/4-top-stock-trades-for-tuesday-tsla-nke-mu-cgc/.

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