the Dow Jones Industrial Average jumped by more than 1% while the Nasdaq Composite struggling to stay above break even on Friday, finishing up 61 basis points, as markets head for a three-day weekend. (That's right, do not forget to keep your screens off Monday, unless you only want to study an extra chart.) By the way, here are the top five stocks to trade for the reopening of markets on Tuesday:
Click to enlarge Parts of Deere (NYSE:OF) suffered a slight pressure on Friday, falling by only 2.1%, despite the absence of earnings forecasts and exceeding revenue forecasts. Stocks are close to $ 165, Deere would need a good quarter to launch its action mode escape.
Now, backing down, we need to see where the support comes in. Away from Friday, which marks the low point in the near term, a 50-day test seems likely.
If we get a broader market correction – and perhaps a trade war-related concern – we could reduce the ED stock in that area from $ 145 to $ 148. This involves the support of the uptrend and the 200-day moving average.
This would give investors a long, low risk opportunity if they found the DE attractive.
Click to enlarge Parts of Nvidia (NASDAQ:NVDA) were up after trading hours Thursday night. The company's results and forecasts gave the bulls confidence and allowed their stock to increase by more than $ 170. It was, however, a key level in the stock – and we highlighted it earlier this week.
With just over 2% stock now, the confidence is not as high and the movement is not as impressive as NVDA fades from top to bottom. Bulls want to see the stock stay above the 21-day moving average now. Below and the 50 days are on the table and possibly a support test of the uptrend below $ 140.
If the 21-day period is respected, a race of up to $ 174 is possible. Above that, $ 200 becomes a possibility again.
Forest cover growth (CGC)
Click to EnlargeLike Nvidia, the modest post-profit rally of Cover growth (NYSE:GSC) does not really inspire the bullish spirits of Wall Street. Equities continue to resist this level of $ 45 to $ 46, as well as the uptrend and the 21-day moving average.
As long as this is the case, CGC will be able to progress technically. If it closes above $ 50, this could trigger a move to the previous highs near $ 60. Below the 21-day moving average, however, and the Canopy Growth stock may need time to reset.
Applied Materials (AMAT)
Click to enlargeA rally from less than $ 30 to more than $ 40 per action right in the 200-day moving average put the bulls in a bad risk-reward situation with Applied materials (NASDAQ:AMAT). Especially with the results of the company.
Despite superior and inferior results, AMAT shares have fallen back after somewhat disappointing forecasts. That said, stocks are rebounding well against the 21-day moving average. Given the period leading up to profits, this price action is not so bad.
Aggressive bulls can buy now and use a fence under 21 days as a stopping point. Conservative bulls can buy on a potential breakout above the 200-day moving average.
The bears are playing too. If they did not like the quarter and the stock, they may consider selling AMAT in the short term with a stop-loss on a 200-day close. More conservative bears can wait for a 21-day break.
If they get it, they can look to move the AMAT to the 50-day moving average.
Newell (NWL) and XPO Logistics (XPO)
Click to enlarge Newell Brands (NYSE:NWL) (top) beat profits but missed revenue estimates for the fourth quarter. Worse, the advice was disappointed.
In total, the report dropped stocks, down more than 20% Friday. As such, the stock of NWL remains non-contact. His dip below $ 18 propels him into the no man's land and puts the lowest $ 15 on the table.
This one remains a catastrophe, just like XPO Logistics (NYSE:XPO), below.
Missed profits brought XPO down Friday, dropping more than 12%.
While XPO is getting closer to his lows, he is no longer a no man's land. Like Newell, his 52-week lows are on the table of possibilities, and it's hard to have much confidence in the name as long as he can not exceed his 21 and 50-day moving averages.
Bret Kenwell is the director and author of Future Blue Chips and is on Twitter. @BretKenwell. To date, Bret Kenwell is a long NVDA.