4 Top Stock Trades for Wednesday: AMD, ACB, NVTA, SPWR

top stock trades - 4 Top Stock Trades for Wednesday: AMD, ACB, NVTA, SPWR

A slight pop gave way to a decline in early trading, but buyers stepped in this time and drove stocks higher. Now, let’s see if we can get a strong finish to the week and this year. With that in mind, let’s look at some top stock trades in the meantime. 

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

top stock trades for AMD
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Advanced Micro Devices (NASDAQ:AMD) gave some bulls a frustrating shake-out last week.

That happened after shares opened last weekly at the two-times daily rotation level near $95, sold off, then broke Friday’s low and closed below the 10-day moving average. On the chart, I broke the last three weeks down into three blue boxes, to help make sense of the weekly ranges. I also highlighted this failure.

While shares quickly reclaimed the 10-day moving average, the stock finished the week with a question mark. On Monday AMD ran back to $95 and stalled, before breaking out clean over this mark on Tuesday (today).

AMD can be a tough one to trade, as it does bounce around a bit, but it’s moves tend to be very technical.

From here, I am looking for a move to $100. On the downside, though, look for $95 and the 10-day moving average to act as support.

Top Stock Trades for Tomorrow No. 2: Aurora Cannabis (ACB)

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

Aurora Cannabis (NYSE:ACB) and other pot stocks have been pretty quiet lately, but are starting to perk up a bit.

Shares ripped higher in early November, topping $14, settled back in near $7, then ripped higher again. After another round of settling — this time along the 200-day moving average — the stock is starting to have that look again.

That look that says it may want to pop. It’s holding the 21-day and 200-day moving averages and looking to rotate over the three-day high at $10.10. Above puts the weekly rotation in play near $10.81.

Above that — and this is key — the declining 50-week moving average will put the November high at $14.48 on the table. This a spec play and don’t forget that when it comes to position for risk.

Top Stock Trades for Tomorrow No. 3: Invitae (NVTA)

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

Invitae (NYSE:NVTA) is getting knocked lower on the day, down almost 7% on Tuesday. On Monday, the stock hit the 261.8% extension and was rejected.

Now we could have a dip-buying opportunity.

Shares are coming into the 21-day and 50-day moving averages at $50.56 and $48.07, respectively. The latter comes into play within penny of the December low at $48.06 as well. It also has the two-times range extension at $48.59.

If this area holds, I think bulls can look for a bounce back into the mid-$50s. Above $55 and uptrend support will put that 261.8% extension back in play near $61.30.

A break of the 50-day moving average could trigger more selling pressure, potentially putting the 100-day moving average in play near $41.

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

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

I had SunPower (NASDAQ:SPWR) on watch today, as it has a high short interest and continued to trade quite well. However, I did not expect a 13% gain on the day.

Share burst off uptrend support and the 10-day and 20-day moving averages, racing through the $24.40 high. If it can hold that level on the downside, bulls will keep their focus on the upside.

Picking targets has been tough for this one, but I will try. Measuring from the December low to the November high, the 161.8% extension comes into play at $27.08. Above that and $30 is possible, followed by the 261.8% extension at $31.41.

On the date of publication, Bret Kenwell held a long position in AMD and NVTA.

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-wednesday-amd-acb-nvta-spwr/.

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