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4 Top Stock Trades for Tuesday: Bitcoin, DKNG, AMC, BYND

top stock trades - 4 Top Stock Trades for Tuesday: Bitcoin, DKNG, AMC, BYND

After a solid finish to last week, stocks opened higher on Monday to start the week. Can bulls keep the party going and push the market to new highs? Let’s look at some top stock trades.

Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)

Top stock trades for BTC
Click to Enlarge
Source: Chart courtesy of TrendSpider

Bitcoin (CCC:BTC-USD) has been incredibly volatile lately. After such a massive plunge down toward $30,000, the cryptocurrency posted a violent snap-back rally back above $40,000.

However, the prior support zone we were watching around $42,500 turned to resistance, proving that we’ve got a change in tone with the asset. While Bitcoin has gone on to nearly retest the lows, we’re also getting a bounce from the $30,000 level again.

It’s a mixed bag with Bitcoin right now and the added volatility doesn’t make it any easier.

While lower support is holding, Bitcoin is also building below the 10-day and 200-day moving averages, as well as prior support. That’s not a great look, if we’re being honest.

The level to watch here is $29,800. That’s this month’s low. A break of this level will likely put a test of the 50-week moving average in play. On a close below that, it’s possible we go on to retest the 2017 highs and breakout level near $20,000.

On the upside, though, I want to see Bitcoin reclaim the 200-day and 10-day moving averages, then $43,000. If it can do that, we could see $47,000-plus.

Top Stock Trades for Tomorrow No. 2: DraftKings (DKNG)

Top stock trades for DKNG
Click to Enlarge
Source: Chart courtesy of TrendSpider

DraftKings (NASDAQ:DKNG) is catching a nice bid on Monday, up more than 7% on the day. Shares reclaimed the $45 level and the 10-day moving average, but now faces a much more difficult test.

Specifically, shares are coming into a cluster of major daily and weekly moving averages, including the 21-day, 200-day, 50-week and 10-week moving averages.

If DraftKings can push through this area, it will be very impressive and put the $56 to $57 zone in play. Above that and $60-plus is possible.

On the downside, however, I want to see DKNG stock hold up over the 10-day moving average and the $45 level. Below these marks puts the recent low near $40 on the table.

Top Stock Trades for Tomorrow No. 3: AMC Entertainment (AMC)

Top stock trades for AMC
Click to Enlarge
Source: Chart courtesy of TrendSpider

AMC Entertainment (NYSE:AMC) is putting together a really nice chart. Shares were putting in a series of higher lows and lower highs — wedging into a tighter and tighter range.

After a few days of being rejected by the 50-day moving averages, shares rocketed over this measure, as well as the April high. In doing so, the stock went monthly-up over $12.22 and climbed to the 61.8% retracement, which acted as resistance.

Now here’s the fun part.

After its pullback, the stock found support at the 10-day moving average and the prior month’s high near $12.22. Now rotating higher again, it’s a picture-perfect reaction.

On the upside, let’s see if we can get another push back to the 61.8% retracement. Above it could put $17 in play.

On the downside, though, watch last week’s low. A close below it will put the 21-day and 50-day moving averages in play, as well as a retest of prior downtrend resistance.

Top Trades for Tomorrow No. 4: Beyond Meat (BYND)

Top stock trades for BYND
Click to Enlarge
Source: Chart courtesy of TrendSpider

Like DraftKings, Beyond Meat (NASDAQ:BYND) is also trading nicely on the day. Also like DraftKings, Beyond Meat has some overhead resistance to keep an eye on.

Clearing the 10-day moving average and pushing through the 21-day moving average now, the stock is coming up to a prior support zone near $120. Given that this zone failed as support earlier this month, one might expect it to act as resistance. It also faces the 10-week and 50-day moving averages in this area.

Above that puts the $135 level in play, followed by the 200-day moving average.

On the downside, see that BYND stock holds the 61.8% retracement as support, should it get there. That measure supported the stock all through the month of May. 

On the date of publication,  Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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


Article printed from InvestorPlace Media, https://investorplace.com/2021/05/4-top-stock-trades-for-tuesday-bitcoin-dkng-amc-bynd/.

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