Friday marked a quiet day for the indices, but a loud day for earnings. That said, let’s look at a few top stock trades as we head into the long holiday weekend.
Top Stock Trades for Tuesday No. 1: Roku (ROKU)
Man, did the trade in Roku (NASDAQ:ROKU) work out well or what? After better-than-expected earnings, Roku shares gapped up into $150 resistance and have since sold off. The stock has given up all of its post-earnings gains, and then some.
As it declines now, it’s running into the backside of prior downtrend resistance (blue line). If it holds, look for an eventual rebound back up to $150 — although Friday’s action is quite discouraging for the bulls.
Below prior downtrend resistance puts the $117 to $122 area on watch, and if we get a dip into that zone, it may be an opportunity. Overall, this was a quality earnings report, and full-year guidance was solid. I would be a buyer on a dip to this level, although I acknowledge momentum has not been on Roku’s side lately — and that $100 to $110 could be on the table should this support level give way.
Top Stock Trades for Tuesday No. 2: Canopy Growth (CGC)
Better-than-expected earnings didn’t result in the same price action for Canopy Growth (NYSE:CGC). Instead, shares are rallying more than 15% at the moment, even though the chart looks rather “blah.”
However, don’t let Friday’s modest-looking candle fool you. CGC stock avoided breaking below critical $17.50 support, while reclaiming its 50-day and 100-day moving averages. Those marks, along with the recent February lows, are now critical support points on the chart. Below them, and $17.50 is back on the table.
On the upside, let’s see if CGC can again challenge the $25 level. Above puts the declining 200-day moving average on the table.
Top Stock Trades for Tuesday No. 3: Virgin Galactic (SPCE)
I flagged Virgin Galactic (NYSE:SPCE) back in late December when shares were looking to break out over $12. Now hitting $28 on Friday, this one has made a killer move to the upside.
I have not wanted to fight this one, simply because these types of big moves are possible. Those who have missed out, but want to try a long in SPCE, may find some luck by waiting for a test-and-hold of the 10-day moving average. That’s been support since the January breakout.
Below puts short-term uptrend support (blue line) on the table, followed by $20 — a key breakout mark earlier this month. Above Friday’s high, though, and $30-plus is on the table.
Top Stock Trades for Tuesday No. 4: Yeti (YETI)
Yeti (NYSE:YETI) stock is down 5% after disappointing earnings, as the breakout earlier this month failed to gain traction. We highlighted this setup, but emphasized that if shares broke below the breakout mark near $37, then traders need to cut ties with it and stop out.
Now down to $32.50, that discipline is paying off. Aggressive bulls may consider Yeti stock a buy now. The 100-day moving average is buoying the share price, while uptrend support (blue line) has been in play for months now.
A bounce puts the 50-day moving average back on the table, and a move above that puts $36 to $37 resistance on the table. Below the 100-day moving average and uptrend support, however, and the 200-day moving average is possible.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU.