4 Top Stock Trades for Wednesday: AMD, GOOGL, AMZN, NKLA

Here are the top stock trades we’re watching for Wednesday morning

top stock trades - 4 Top Stock Trades for Wednesday: AMD, GOOGL, AMZN, NKLA

Equities finally took a slight break on Tuesday, declining a bit after several strong days of rallying. With that in mind, let’s look at a few top stock trades for Wednesday.

Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)

top stock trades for AMD
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Source: Chart courtesy of StockCharts.com 

Advanced Micro Devices (NASDAQ:AMD) has been quiet for a few weeks now, but started off hot on Tuesday. Shares ended the day up about 6.5%.

While the stock was having trouble reclaiming its 20-day moving average, it continued to hold its 50-day moving average. And although bulls weren’t in strong control necessarily, the setup was hardly bearish.

With a double-bottom near $49, investors had a measured risk/reward. And now, shares are pushing into downtrend resistance.

If AMD stock can continue higher, it puts $58 in play. Above $58, and new all-time highs are possible. Should downtrend resistance keep AMD in check, however, see if the 20-day moving average acts as support. However, below the 50-day moving average is not a good development for longs.

Top Stock Trades for Tomorrow No. 2: Alphabet (GOOG, GOOGL)

top stock trades for GOOGL
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Source: Chart courtesy of StockCharts.com 

Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) has been trading well, now hitting its highest level since February. It helps that the Nasdaq Composite hit a record high on Tuesday, baffling many investors.

Shares are breaking out over short-term resistance at $1,450 as GOOGL continues to fill into the big gap-down from February. If it can fill it up near $1,480, it puts $1,500-plus in play, as well as new highs.

On a dip, though, I need to see uptrend support (blue line) and the 20-day moving average hold as support. If it doesn’t, it could trigger a profit-taking reaction among traders who bought much lower.

Top Stock Trades for Tomorrow No. 3: Amazon (AMZN)

top stock trades for AMZN
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Source: Chart courtesy of StockCharts.com 

Like the Nasdaq, Amazon (NASDAQ:AMZN) is hitting new highs too. Shares are breaking out over $2,500 and uptrend resistance (thin blue line). Now what?

It would obviously be bullish to see prior resistance hold as support should Amazon pull back. If it doesn’t, though, see that uptrend support holds on the dip. Otherwise, it could signal that AMZN needs more time to consolidate.

One level to note is $2,531, which is the 161.8% extension from the March low to the February high. Above that, and bulls are in firm control.

On a continued push, look to see if AMZN can climb to $2,745, which is the two-times extension of the previously mentioned range. For longer-term investors, the 261.8% extension comes into play near $3,090 — although, $3,000 will likely be a bigger hurdle than this mark.

Top Stock Trades for Tomorrow No. 4: Nikola (NKLA)

top stock trades for NKLA
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Source: Chart courtesy of StockCharts.com 

Nikola (NASDAQ:NKLA) shares are going bonkers. The stock rallied more than 100% on Monday and are up another 9% on Tuesday — although, the session’s range was incredibly wide. We’ve seen a high of $93.99 and a low of $57 today.

The electric car space has been heating up, with Tesla (NASDAQ:TSLA) and Nio (NYSE:NIO) also showing momentum lately.

As far as Nikola goes, this one is a no-touch for me. I would be interested in seeing if the stock can get to $100, but I will not stake my hard-earned dollars on finding out. A move below Tuesday’s low puts the week’s low in play at $40.42. Below that, and keep an eye on the $35 area. Below that, and bulls will lose control and momentum.

This is a great stock to observe, but likely too volatile to trade for most.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GOOGL and AMD.


Article printed from InvestorPlace Media, https://investorplace.com/2020/06/4-top-stock-trades-for-wednesday-amd-googl-amzn-nkla/.

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