The markets got a huge bounce on Tuesday, but they’re not out of the woods. That said, let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA) has been bursting higher off the recent lows, already up $63 (33%) from the recent low. However, despite Tuesday’s big rally, shares ran into resistance at the 50-day moving average.
Investors are getting pretty bulled up after the recent move. Keep in mind, Another test of the $200 level and 200-day moving average is certainly not out of the cards in this market.
On a pullback, look to see how NVDA holds up in the $230 to $235 area. A break below may lead to a retest of the recent lows, or at least a near retest.
Over the 50-day moving average, though, and Nvidia stock can climb to $270-plus, technically speaking.
Top Stock Trades for Tomorrow No. 2: Advanced Micro Devices (AMD)
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Remember that sweet falling wedge setup we were hollering about last week in Advanced Micro Devices (NASDAQ:AMD)? Well, look at it playing out now.
Shares burst over $42 and eclipsed $46 in Tuesday’s session. So far, though, it’s struggling to hold this mark. Traders may consider taking some profits now, or closing it and realizing all of their profits.
Over $46, and the 50-day moving average just north of $48 is possible. Below the 100-day moving average at $44.71, however, and a retest of the $42 level may be in play. And in this market, anything is possible.
Top Stock Trades for Tomorrow No. 3: Nasdaq ETF (QQQ)
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As good as bulls feel right now, this may be nothing more than a dead-cat bounce. Is that a guarantee? Of course not. But realize that bottoming is usually more a process than an event.
And even though Tuesday’s move feels good, the PowerShares QQQ ETF (NASDAQ:QQQ) mostly remains stuck in its recent range. That’s between about $168 on the downside and $185 on the upside. It’s been a volatile and choppy ride inside of this range, but so far, it’s been holding.
A breakout over $185 could get a squeeze going up to the $195 level and the 200-day moving average. However, if the QQQ can’t breakout over $185, it leaves $170 or lower on the table. Below $170, and a retest of the $165 low is possible.
Top Stock Trades for Tomorrow No. 4: MGM Resorts (MGM)
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MGM Resorts (NYSE:MGM) and other casino and hospitality stocks have been demolished. That’s why we’re using a 10-year weekly chart to get an idea of this crazy range.
Support came into play near $8.50, even though MGM did briefly break below this mark. On the plus side, it did not close below it on a weekly basis. Now bouncing, let’s see if MGM can get back to the $16 mark. Above could trigger a breakout back to $20-plus.
If $16 is resistance, though, the new trading range could — at least for now — become $8.50 to $16.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA.
