Monday was a quiet session to start off our holiday-shortened trading week. Some of the smaller, high-beta stocks made notable moves higher, while FAANG still struggles for a catalyst. With all of that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Plug Power (PLUG)
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Plug Power (NASDAQ:PLUG) continues to plow its way higher, gaining another 10% on Monday. However, it remains bound to its channel (blue lines).
Currently, shares are pushing into channel resistance as it makes new annual highs — although the 261.8% extension isn’t all that far away at $27.64. If it gets there, there’s a chance Plug stock could push to $30.
On a dip, let’s see if shares hold the 10-day moving average. If so, bulls will likely view this a buying opportunity and gobble up the stock.
However, not all hope is lost should this level fail as support. Well, sort of. It will open up the $19 level as support, as well as channel support and the 50-day moving average. And while both levels are quite a bit away from current prices, PLUG stock would still be constructive.
Obviously, I would prefer to buy the dip to this level vs. holding a stake all the way down to the mark. But it all depends on investors’ risk tolerance, cost basis and position size.
Top Stock Trades for Tomorrow No. 2: Occidental Petroleum (OXY)
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Occidental Petroleum (NYSE:OXY) is one of the few stocks that actually took out its first-quarter low this quarter, as it broke down in October. However, shares are on the move higher as we speak.
Now running into the 200-day moving average, it’s hard to be overwhelmingly bullish after such a deep move lower. However, these types of bounce plays can move fast and furiously when they get going.
If Occidental continues, I want to see if shares can test up to $18 resistance. That’s followed by the June high at $24.46 and the full March gap-fill at $25.46.
On the downside, however, let’s see if the $12.50 area holds as support.
Top Stock Trades for Tomorrow No. 3: Piedmont Lithium (PLL)
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Shares of Piedmont Lithium (NASDAQ:PLL) tried to get going last week, but just couldn’t do it. The stock petered out near $30 and dipped.
However, after a quick two-day drop, PLL stock found support near the 20-day and 50-day moving averages — giving investors a nice hammer candle off the lows on Thursday, followed by an inside day on Friday.
Now rotating over the Thursday and Friday high, bulls want to see if PLL can go weekly-up with a rotation over last week’s high at $30.74. That could open the door to the $35 to $37 area.
Piedmont Lithium is a slippery one, though. If it moves lower, look for a close below $24.50. That would put it below the 20-day and 50-day moving averages, as well as uptrend support (blue line).
Top Stock Trades for Tomorrow No. 4: Palantir Technologies (PLTR)
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After a quiet start to the public markets, Palantir Technologies (NYSE:PLTR) has been trading quite well. Shares have doubled in less than a month, as it now probes $20.
From here, it’s somewhat hard to chase this name. However, it looks like a clear buy-the-dip candidate should we get a pullback.
Specifically, I would love a decline into the $18 to $19 area, particularly if it coincides with a test of the 10-day moving average. That should bring in a number of buyers provided something odd — like a market-wide free-fall — isn’t occurring.
Otherwise, there’s no telling just how far this name could run on its own.
On the date of publication, Bret Kenwell held a long position in PLL.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
