4 Top Stock Trades for Tuesday: GOOGL, AMZN, WYNN, RKT

top stock trades - 4 Top Stock Trades for Tuesday: GOOGL, AMZN, WYNN, RKT

Stocks began the week higher on optimism over the rollout of a Covid-19 vaccine. However, bulls had trouble maintaining those gains after the morning pop. That said, let’s look at a few top stock trades for Tuesday. 

Top Stock Trades for Tomorrow No. 1: Alphabet (GOOG, GOOGL)

top stock trades for GOOGL
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Source: Chart courtesy of TradingView

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has been the leader of the FAANG group over the past few months. However, its momentum has been waning.

On Wednesday Dec. 9, Alphabet stock broke and closed below its 10-day moving average. In the following session, it gapped below the 21-day moving average. Now, it’s being met as resistance at these two points.

That said, this is where things get a little trickier. Should Alphabet have a daily-down rotation and take out Friday’s low near $1,753, then last week’s low near $1,733.50 is in play. That’s along with the key $1,717 area, which was the high from September.

That area has been acting as support since Alphabet gapped above it in November.

On the upside, however, a close back over the 10-day and 21-day moving averages puts a possible test of the highs in play.

Top Stock Trades for Tomorrow No. 2: Amazon (AMZN)

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

Unlike Alphabet, Amazon (NASDAQ:AMZN) has not been a leader over the past few months. That’s evident after a quick glance at its charts.

With that said, the stock continues to wind in a tighter and tighter range, as it makes a series of higher lows and lower highs. This wedge pattern (blue lines) will ultimately resolve in one direction or the other.

Shares are sitting at a key area now. The weekly-up rotation will take play on a move over $3,184.13. However, Amazon also has its 21-week moving average, 50-day moving average and 100-day moving average all near this area as well.

It’s safe to say that the $3,185 area is the line in the sand. Over it, and Amazon may go on a strong rally — potentially putting the November high in play at $3,366, followed by the $3,500 area.

If it fails to push through the $3,185 area, then wedge support and the December lows could be back in play near $3,073.

Top Stock Trades for Tomorrow No. 3: Wynn Resorts (WYNN)

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

Wynn Resorts (NASDAQ:WYNN) put together a nice rally over the past month, climbing from a low around $85 to a recent high near $115. However, shares have been stalling.

Wynn has been chopping between the June high near $109 and the recent highs near $115. Moving to the downside on Monday, bulls want to know if the 10-day moving average — which has been support over the past month — will continue to act as support now.

If it does, investors will want to see a retest of $115 resistance, with a possible breakout over that mark. In that scenario, it could put $125 in play, a gap-fill level from February.

If the 10-day moving average fails as support, the 21-day moving average is in play, with $95 on the table below that.

Top Trades for Tomorrow No. 4: Rocket Companies (RKT)

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

Rocket Companies (NYSE:RKT) has been gaining some momentum over the past few days. 

After coming public in August, buyers bid this name up aggressively into its September highs — before watching it fade and struggle. 

Most recently, shares bounced from the $19.50 area and after a few bumpy days, reclaimed its 10-day, 21-day and 50-day moving averages. Nice work, bulls. 

The stock is now pushing higher, with the November high near $23 on the table. Above that, and the October high is in play near $24, followed by $27 above that. 

On the downside, I want to see the $21 area hold as support, where RKT stock currently has a trifecta of moving average support. Below will put uptrend support in play (blue line).

On the date of publication, Bret Kenwell held a long position in GOOGL. 

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

Article printed from InvestorPlace Media, https://investorplace.com/2020/12/4-top-stock-trades-for-tuesday-googl-amzn-wynn-rkt/.

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