4 Top Stock Trades for Wednesday: WKHS, SBUX, GE, SPCE

top stock trades - 4 Top Stock Trades for Wednesday: WKHS, SBUX, GE, SPCE

It was a quiet day for the indices, but there was plenty of action below the surface. Now, let’s look at a few top stock trades for Wednesday as earnings season kicks into high gear.

Top Stock Trades for Tomorrow No. 1: Workhorse (WKHS)

top stock trades for WKHS
Click to Enlarge
Source: Chart courtesy of TrendSpider

Workhorse (NASDAQ:WKHS) was off to the races today, ending the day up more than 30%. While the gains are big, is it just getting started?

Shares broke out over the $30 mark and are galloping higher now. I would love to see the $30 to $31 area act as support, solidifying the bullish breakout.

On the upside, bulls are likely looking for a push into the $40 area, with the 161.8% extension at $40.79. The setup here is short and sweet: either the breakout level holds as support and WKHS stock goes higher, or it doesn’t.

Top Stock Trades for Tomorrow No. 2: Starbucks (SBUX)

top stock trades for SBUX
Click to Enlarge
Source: Chart courtesy of TrendSpider

Starbucks (NASDAQ:SBUX) is rallying nicely on Tuesday, ending the trading day 1.2% higher ahead of its earnings report after the close.

The stock gave us a bit of a pump-fake last week, as it gave us a short-lived weekly-up rotation that fizzled out a bit too quickly. The plus side is that it gives bulls an opportunity for a two-times weekly-up rotation. The downside is that earnings could ruin the setup.

I love the way SBUX stock continues to hold its 10-week moving average. If we can get a rotation up over the $105.75 area, it could quickly put the $107.75 all-time high on the table.

Obviously, earnings will make it more likely that this isn’t a clean rotation — it will likely be more of a gap one way or the other. But the levels are still worth knowing. Over $110, and bulls may turn their attention to a longer-term price target near $121.

On the downside, however, a break of the 10-week moving average could put $99.72 in play — followed by $94.

Top Stock Trades for Tomorrow No. 3: General Electric (GE)

top stock trades for GE
Click to Enlarge
Source: Chart courtesy of TrendSpider

General Electric (NYSE:GE) caught a nice post-earnings spark, but it’s fading hard from the highs.

Shares ran up and filled the gap from February at $12.25. While GE stock is holding the 10-week moving average, it’s also struggling to get above and stay above the 78.6% retracement.

Until it can do that, it’s hard to be super trusting on the long side. If it can get above this level, though, it puts $12.25 back in play. Above that mark, and a run to $13 is possible.

On the downside, however, losing this week’s low and the 10-week moving average would be a blow to the bull case. That could put this month’s low at $10.40 and the 61.8% retracement in play.

Top Trades for Tomorrow No. 4: Virgin Galactic (SPCE)

top stock trades for SPCE
Click to Enlarge
Source: Chart courtesy of TrendSpider

Virgin Galactic (NYSE:SPCE) has been volatile, but bulls are seeing their patience pay off. We have liked this one over the past few months, but it’s been a monster lately.

Shares are riding a six-day win streak, and are up in 13 of the past 15 trading sessions.

Tuesday’s near-20% ascent sent SPCE stock to new all-time highs and the 161.8% extension from the recent pullback. That would have me taking at least some profits into today’s move.

It seems too demanding to ask SPCE stock to now hold the $42.50 level. However, if it can, the two-times range extension may be in play near $49.

On the downside, though, let’s look for a dip to the 10-day moving average and see if buyers step in at that mark.

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/2021/01/4-top-stock-trades-for-wednesday-wkhs-sbux-ge-spce/.

©2021 InvestorPlace Media, LLC