After a strong Monday, equities ripped even higher on Tuesday — dumping a boatload of top stock trades into our go-through pile. With that, let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Disney (DIS)
After reclaiming the 200-day moving average, DIS stock also reclaimed prior short-term support near $143 — as well as downtrend resistance (blue line). It now leaves bulls in a tough spot ahead of the numbers.
On a muted response, I would love to see DIS shares hold the $143 level and ideally, the 50-day moving average. If the stock rallies, see if it can reclaim and hold $150 — putting the recent 52-week high at $153.41 on the table.
On a pullback below the 20-day, see that the 200-day moving average holds as support.
Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)
I don’t even know what to say about Tesla (NASDAQ:TSLA) anymore. After rallying nearly 20% on Monday, it follows that performance with almost a 14% surge on Tuesday. Any short sellers left here are being squeezed for every penny they have.
The move is unbelievable, and not like one we’ve seen for quite some time. I wouldn’t be surprised if this one hits $1,000 — but investors should understand, the move is not sustainable.
This stock is nearly $300 above its 20-day moving average. It would require a near-33% pullback just to hit it. I certainly would not be a buyer, but I don’t want to be a seller of TSLA either. The people arguing on Tuesday that it’s a short are the same ones that were arguing on Monday — before it rallied another $130 in a single day.
So, what should Tesla be to you? A lesson that if you let a position get out of control, it can cost you dearly. In this case, short sellers who were stubborn rather than disciplined lost their shirts in this one.
Don’t be the next one, with Tesla or otherwise.
Top Stock Trades for Tomorrow No. 3: Ford (F)
Unlike Tesla, which is now 4.4 times the size of Ford’s (NYSE:F) market cap, the latter has not been enjoying robust returns. However, it has been rallying.
With this week’s move higher, Ford stock has reclaimed its 50-week and 100-week moving averages — and has reclaimed prior uptrend support. With earnings due up after the bell, the stock’s reaction will be one to keep an eye on.
Should shares continue higher, see if Ford stock can climb back to the $10 mark. There it will likely face resistance, but a move over this mark could give it a spark for 2020.
On a decline, see that F holds $9. Below will mean it lost the 50-week and 100-week moving averages, and puts the 2020 low of $8.73 on the table. Below that, and $8.25 is possible.
Top Stock Trades for Tomorrow No. 4: Snap (SNAP)
Snap got there earlier this year, fought with it for a few days, then jumped to $19.75. After pulling back, the 20-day moving average and $18 mark held as support. Longs now need to see two things.
First, they need $18 and the 20-day moving average to continue holding as support. Next, they need to see shares clear channel resistance (blue line) — paving the way back to $19.75. Above that, and $20-plus is possible.