Bears couldn’t gain traction on Monday, as bulls follow-through after a robust day on Friday and as equities continue to march higher. With that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
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Early in the trading session, I flagged Tesla (NASDAQ:TSLA) as shares opened up over last week’s high. The weekly rotation up is exactly what we wanted to see after last week’s bullish action.
The gap gave investors a chance, too, as shares slipped back toward last week’s highs before firming up and moving higher on the day. Now there is not much that stands in the stock’s way from retesting its high near $969.
If it gets there, there’s a chance we could see TSLA push through and gun for $1,000. On a dip, though, see if last week’s high at $909.66 acts as support. Below puts uptrend support (blue line) and the 20-day moving average in play.
Top Stock Trades for Tomorrow No. 2: Beyond Meat (BYND)
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It took some time and unfortunately gave us a frustrating shakeout, but Beyond Meat (NASDAQ:BYND) is delivering.
After the stock’s post-earnings pop above the 200-day moving average and its rally up through $130 resistance, I was looking for a breakout to $160. With Monday’s 21.7% rally, we’re over that mark with BYND.
A larger push could get it to $170-plus, particularly with the strength of Monday’s move. Investors are wondering, though, where should they look for support if $160 rejects BYND?
If that’s the case, see if Beyond Meat responds to the May high as support, near $147.50.
Top Stock Trades for Tomorrow No. 3: Chesapeake Energy (CHK)
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The longs are really taking it to the shorts in Chesapeake Energy (NYSE:CHK). This bankruptcy candidate has gone from a low of $7.77 last month to a session high of $77.14 on Monday.
That’s an epic short squeeze as oil stocks are back in favor at the moment, and as Chesapeake sports a 39.7% short float at the moment. I’m not sure why so many were short, as there’s not much juice left to squeeze from this one.
In any regard, these are the types of moves you can see when a number of factors align. From here, I want to see if CHK can clear par and push up to $110. Above that puts the 200-day moving average in play.
On the downside, however, see how Chesapeake handles $40. Below could send it back to $25.
Top Trades for Tomorrow No. 4: Aphria (APHA)
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Cannabis stocks are coming back in favor, and Aphria (NASDAQ:APHA) isn’t missing its chance to rally. Shares are up 11.7% at the close on Monday, but more importantly they are clearing a key level.
Aphria is back above its 200-day moving average for the first time since April 2019. And now, it’s simple.
Bulls want to see the 200-day moving average act as support on the downside. On the upside, they want to see APHA do what so many other beaten-down stocks are doing right now: ripping higher.
If it catches a wave of momentum, see if APHA stock can rally up to the $5.75 to $6 zone. That was prior support in August and resistance in January.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.
