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4 Top Stock Trades for Wednesday: UBER, ACB, NVAX, DKNG

top stock trades - 4 Top Stock Trades for Wednesday: UBER, ACB, NVAX, DKNG

After a higher open, equities slipped lower throughout Tuesday’s trading session. Let’s look at a couple top stock trades for Wednesday.

Top Stock Trades for Tomorrow No. 1: Uber (UBER)

top stock trades for UBER
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Uber (NYSE:UBER) stock is jumping on Tuesday, rallying on talks of a possible deal with GrubHub (NYSE:GRUB).

The move sent shares of Uber over its post-earnings high from Friday at $33.30. It also leaves investors at an interesting juncture on the charts.

For now, the stock continues to hold the declining 200-day moving average as support. On a close below this mark, there should be some support — it’s just not clear where it will come into play.

Uptrend support and the 20-day moving average sit between $29 and $29.50, while prior resistance at $28 could turn to support now that Uber is above it. If all of the above fail, the 50-day moving average should support the stock, just as it did earlier this month ahead of earnings.

If Uber stock gains momentum and clears Tuesday’s high — currently at $34.45 — then look for a possible run up to the February gap, which starts near $39.

Top Stock Trades for Tomorrow No. 2: Aurora Cannabis (ACB)

top stock trades for ACB
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Man, Aurora Cannabis (NYSE:ACB) just can’t catch a break. After a 12 for 1 reverse stock split, shares are already back below $7 and making new 52-week lows on the day.

I have not liked ACB for a very long time, and it’s got nothing to do with some strange vengeance. Simply put, the charts have been bearish for a long time, and they remain that way now.

If ACB stock can reverse and reclaim $8, along with downtrend resistance and some of its key moving averages, I will change my tune on the stock. Until that happens, though, sellers remain in control of Aurora. I’d avoid it for now and look elsewhere in the cannabis space.

Top Stock Trades for Tomorrow No. 3: Novavax (NVAX)

top stock trades for NVAX
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Novavax (NASDAQ:NVAX) is what investing dreams are made of. Shares opened the year near $4 and traded just a few cents short of $45 on Tuesday. That’s an 11-fold return in a few months — at a time where the S&P 500 has been extremely volatile.

In any regard, take note of the other spikes this stock has seen. While they all eventually yielded to higher prices, the stock suffered a notable decline first. In fact, in the prior spikes, the high was put in on the first major up-day.

Remember, reading the charts is about finding probabilities, not certainties. For all we know, NVAX is heading to $50-plus by the end of the week. But if I came into Tuesday long, I am booking some or all profits after a move like this. I don’t know if we’ll see $25 anytime soon, but look for this level to act as support if and when NVAX gets there.

Top Stock Trades for Tomorrow No. 4: DraftKings (DKNG)

top stock trades for DKNG
Click to Enlarge
Source: Chart courtesy of StockCharts.com

DraftKings (NASDAQ:DKNG) shares continue to climb, making new 52-week highs on Tuesday.

The next stop may well be $30, provided DraftKings can clear Tuesday’s high at $28.15. Above that and the 138.2% extension near $33 is in play.

Should DKNG pull back, I want to see support come into play in that prior consolidation zone between $23.50 and $24.50. Below uptrend support (blue line), and the 20-day moving average is on the table.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/05/4-top-stock-trades-for-wednesday-uber-acb-nvax-dkng/.

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