Stocks added to this week’s gain with another rally on Thursday. With that in mind, let’s look at a few top stock trades as we head into Friday.
Top Stock Trades for Tomorrow No. 1: Canopy Growth (CGC)
The cannabis stocks have been regaining momentum lately, as we highlighted earlier this week. Taking a closer look at Canopy Growth (NYSE:CGC), we can see that action unfolding as well.
Shares are up more than 10% at the time of this writing, as buyers continue to step in.
Above is a daily chart and below is a weekly chart. In both scenarios investors can see how the stock is now running into the 50-week and 200-day moving averages. Above opens the door to the $18.25 level.
If CGC clears that, then look for a move to $19.50 to $20 area. If it can clear and hold $20, Canopy could re-challenge the May high near $22, followed by the 200-week moving average up near $23.
On the downside, though, a break of the 50-day moving average could put a gap-fill in play, possibly followed by a test of $14.
Remember, this group can run hard and also run out of steam at the snap of one’s fingers. You’ll have to pivot if these stocks do too. Don’t be stubborn.
Top Stock Trades for Tomorrow No. 2: Carnival (CCL)
Carnival Cruise (NYSE:CCL) reported a top- and bottom-line miss and provided investors with a business update. The news isn’t great, with shares down 2.25%. However, it’s not horrendous either with shares holding up over support.
In fact, CCL stock is holding the 20-day and 50-day moving averages. Should the stock remain above uptrend support (blue line), bulls will remain in control.
If CCL clears this week’s high at $16.17 and the 20-week moving average at $16.30, a squeeze up to 23.6% retracement is possible, near $18. Above that puts the September highs in play at $18.92, followed by the 200-day moving average.
On the downside, however, a break of uptrend support likely puts range support in play near $13.50.
Top Stock Trades for Tomorrow No. 3: Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) has been trading very well lately. After pulling back in September, shares formed a falling wedge pattern (blue lines) before breaking to the upside.
In doing so, AMD reclaimed the 20-day and 50-day moving averages and rallied into the $87.50 area. That mark has been pretty tough resistance for AMD, save for the few days it spent above it in late August and early September.
On a dip, I want to see the 20-day and 50-day moving averages play a role as support. Below could put a retest of last month’s support level in play, near $74.
Above $88, and AMD could challenge the all-time high and the 261.8% extension near $95. Clearing it will put $100 on the table.
Top Trades for Tomorrow No. 4: IBM (IBM)
International Business Machines (NYSE:IBM) almost rallied higher by 10% on the day, although the stock gave up a good portion of those gains.
The $130 level and the 200-week moving average have been resistance for most of the year. A weekly close above these two levels would be a positive development for IBM bulls.
It would put this week’s high on the table at $135.50, followed by the 78.6% retracement at $140.98.
On the downside, however, a close below the 200-week moving average keeps the 50-week and 10-week moving averages in play below $125.
Top Trades for Tomorrow No. 5: Carvana (CVNA)
Carvana (NYSE:CVNA) has been surprisingly strong this year, with the stock’s big gap higher in September sending it to new highs.
Shares have since backed off those highs, but continue to trade well. The $230 to $235 area remains resistance for the time being. A move above this mark that triggers a breakout could send shares up to the 261.8% extension near $265.
On the downside, buyers may look for a dip down to the gap-up low around $200, where CVNA will also find the 20-day and 50-day moving averages nearby.
A dip to that area could be attractive. However, a close below it could put a gap-fill down toward $175 on the table.
On the date of publication, Bret Kenwell held a long position in AMD.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.