The choppy days persist as traders grow more and more frustrated with the market even as major indices hang near all-time highs. That said, let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
Tesla (NASDAQ:TSLA) long are hurting amid the current slide, although they probably liked Tuesday’s action. The stock gave us a bullish engulfing candle on the day.
The stock is doing a great job firming up around $600, but at the same time, $700 has been resistance, while the short-term trend is to the downside.
Let’s keep it simple, though. Above last week’s low and Tesla stock is still okay. Now, that doesn’t mean it’s great or looks good. It just means it’s not breaking. That keeps the 10-day and 21-day moving averages in play, followed by the $700 level.
However, a close below this week’s low is bad news. That will put the March low in play near $539.50, followed by the 200-day moving average. Below both of these marks and the $500 breakout level is in play.
Top Stock Trades for Tomorrow No. 2: BlackBerry (BB)
BlackBerry (NYSE:BB) is reported earnings after the close. But even before the release, it was clearly prudent to book gains on that monstrous short squeeze higher.
In any regard, shares are clinging to that $8.80 to $9.30 area, along with the 100-day moving average. Downtrend resistance and its short-term moving averages continue to squeeze BlackBerry lower. Confidence is low going into the print.
On a bullish reaction, I really want to see a close above $10, as well as a move over the 10-day and 21-day moving averages. As we enter April, a monthly-up rotation over the $12.50 area would be quite bullish and set up a potential move toward $15.
On the downside, however, a close below $8.82 is clearly bad news. It would potentially put $7.50 and the 200-day moving average in play.
Top Stock Trades for Tomorrow No. 3: U.S. Steel (X)
U.S. Steel (NYSE:X) remains explosive as bulls keep pounding the table for a massive infrastructure bill. Shares came rocketing off the $20 level and are now pressing $25.
The $24.84 area was a key pivot. A close above that mark will be the first time since the first half of 2019. If the stock can maintain momentum, perhaps the 261.8% extension is possible, up near $30.40.
On the downside, though, keep the risk tight. A move below $23.85 could trigger a correction back down toward $20. For now, the dips are a buy, although a break lower could send X stock down in a hurry.
Below the 100-day moving average, and $16 is in play.
Top Trades for Tomorrow No. 4: McCormick (MKC)
Forget summer and grilling. Wall Street continues to doubt that McCormick (NYSE:MKC) can continue to generate growth once the country opens back up and the restaurant restrictions go away.
The stock looked great at Tuesday highs, but couldn’t muster up the strength to hold those gains.
Shares faded hard from downtrend resistance (blue line) and couldn’t hold up above the 200-day moving average. This one is too far into no man’s land for me.
I either want to buy a juicy, Montreal Seasoning covered pullback down to $82.50, or wait for MKC stock to clear these overhead resistance marks. Above $96, and $100-plus is in play.
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.