4 Top Stock Trades for Wednesday: BYND, SHOP, NIO, SPWR

top stock trades - 4 Top Stock Trades for Wednesday: BYND, SHOP, NIO, SPWR

After a monstrous day on Monday, stocks took a breather on Tuesday, spending most of the day near flat. That doesn’t mean some of our top stock trades weren’t putting together big moves though. With all of that in mind, let’s have a look.

Top Stock Trades for Tomorrow No. 1: Beyond Meat (BYND)

Beyond Meat Surges BYND
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Source: Chart courtesy of StockCharts.com

Beyond Meat (NASDAQ:BYND) was in focus today, rallying more than 10% until it ran into resistance.

That resistance came in the form of the 138.2% extension and the June highs between $160 and $165. This area stymied Beyond Meat’s summer rally, as shares ultimately faded lower.

On the plus side, it allowed the stock to carve out a notable low around $120.

Let’s see if we can get a close above the 138.2% extension with this one. If so, it could trigger an eventual move up toward the 161.8% extension near $190. Until the trend becomes invalidated, bulls can look to buy the dip into the 10-day moving average and uptrend support (blue line).

Top Stock Trades for Tomorrow No. 2: Shopify (SHOP)

Beyond Meat Surges SHOP
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Source: Chart courtesy of StockCharts.com

After an enormous rally from the March lows, Shopify (NYSE:SHOP) has done well this summer. However, it has struggled to push through the $1,100 area.

Its failure to break through ultimately led to a pullback. Eventually shares were able to reverse off $850 on Sept. 17. I think it’s important to highlight the fact that when the Nasdaq Composite made new lows on the 21st and 24th, Shopify did not.

Now reclaiming the 50-day moving average on Tuesday, let’s see if shares can push through the 261.8% extension near $1,060. Above that puts $1,100 on the table again, followed by the all-time highs up near $1,147.

Ultimately, Shopify bulls will be looking for a run up to the three-times range extension near $1,171 should the stock clear the current highs.

On the downside, a break of its 10-day and 50-day moving averages puts $900 in play, followed by the September low.

Top Stock Trades for Tomorrow No. 3: Nio (NIO)

Beyond Meat Surges NIO
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Source: Chart courtesy of StockCharts.com

Nio (NYSE:NIO) stock was showing signs of breaking down late last week. However, uptrend support (blue line) held firm, leading to the rebound we’re seeing now.

With Tuesday’s 10%-plus surge, Nio is challenging its prior highs from August and early September near $21.

If the stock can vault over this level, expect a test of the 161.8% extension at $21.59. Above that, and the two-times range extension is all the way up at $26.41. Keep in mind, these extensions are drawn from the entirety of Nio’s public trading range.

On the downside, a break of the 10-day moving average could trigger a trip to the 50-day moving average and uptrend support.

Top Trades for Tomorrow No. 4: SunPower (SPWR)

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

SunPower (NASDAQ:SPWR) can be a wild mover, but a profitable one when timed right in a bull trend.

In late August and early September, shares burst higher. However, momentum waned as shares pulled back in a nice, tight range (blue lines).

After reclaiming the 10-day moving average on Friday, shares burst out of this range on Monday and are now challenging the prior highs between $12 and $12.50. If SPWR can push through this area, look for a challenge of the 261.8% extension up at $14.89.

On the downside, look for a dip to the 10-day moving average and pay particular attention if it holds as support.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2020/09/4-top-stock-trades-for-wednesday-bynd-shop-nio-spwr/.

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