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4 Top Stock Trades for Tuesday: TSLA, WYNN, WFC, NFLX

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

top stock trades - 4 Top Stock Trades for Tuesday: TSLA, WYNN, WFC, NFLX

After a strong open on Monday, equities reversed lower as investors begin to fear another wave of shutdowns due to the novel coronavirus. With that in mind, let’s look at a few top stock trades for Tuesday.

Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)

Top stock trades for TSLA stock
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Did Tesla (NASDAQ:TSLA) just put in a temporary top? It looks like it may have with Monday’s action. 

The stock gapped higher and ran higher by more than 16% at one point in the session. Talk about explosive! When I last discussed Tesla, I said there was a chance that the stock could climb to the two-times range extension at $1,587. 

It surprisingly did just that on Monday, but eventually fell below this mark. Remaining below will put the 10-day moving average and the $1,400 breakout level back in play. 

Above Monday’s high at $1,795 and the 261.8% extension could be on the table, all the way up at $1,969.69.  

Top Stock Trades for Tomorrow No. 2: Wynn Resorts (WYNN)

Top stock trades for Wynn stock
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Look at the robust volume we’re seeing in Wynn Resorts (NASDAQ:WYNN) — and the session wasn’t even over when this snapshot was taken. 

Support at $70 held, as bulls are making a big move on Monday. Wynn stock is breaking out over downtrend resistance (blue line), while attempting to reclaim the 50-day and 100-day moving averages. 

If it can do so, it puts resistance in play near the $88 to $90 zone. A move above that puts the 200-day moving average on the table, as well as the potential for a retest of the June highs near $109.

On the downside, look for a close below $80. That leaves Wynn below its 50-day and 100-day moving averages, keeping $70 in the realm of possibilities. 

Top Stock Trades for Tomorrow No. 3: Wells Fargo (WFC)

Top stock trades for WFC stock
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Wells Fargo (NYSE:WFC) has been one of the weaker banks out there. In any regard, the stock is set to report earnings on Tuesday before the open, alongside Citigroup (NYSE:C) and JPMorgan (NYSE:JPM). We previewed those two on Friday

Shares continue to hold $24 and just recently broke above downtrend resistance (blue line). If it continues higher on earnings, look to see if WFC can reclaim the 50-day moving average. 

Above puts the 100-day moving average in play near $28.70, followed by the $30 level, which WFC has had trouble maintaining above.

Below $24, and the May low (which is also the 2020 low) is in play near $22. 

Top Stock Trades for Tomorrow No. 4: Netflix (NFLX)

Top stock trades for NFLX stock
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Netflix (NASDAQ:NFLX) has been on fire lately, joining stocks like Tesla as they surge higher. 

However, also like Tesla, shares reversed off the highs today. Investors need to be careful here. Shares tagged a high near $575, and yet, a pullback to $500 wouldn’t be unhealthy. 

Near this level it will find the two-times range extension around $495 and the 10-day moving average at $503. 

Should Netflix continue higher once again, see if it can hold above the 261.8% extension, near $560. Above puts this week’s high in play. 

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/2020/07/4-top-stock-trades-for-tuesday-tsla-wynn-wfc-nflx/.

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