Late in the day on Monday, the stock market bounced from the session lows. Then, on Tuesday, it tried to add to the bounce. But with the Fed just around the corner, bulls aren’t acting too aggressive. With all of that in mind, let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Lucid Motors (LCID)
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Lucid Motors (NASDAQ:LCID) is turning a couple of heads on Tuesday, rallying more than 15% at one point during the session. These types of stocks can be difficult to trade, due to the wide-range nature they tend to have.
We were aggressively long Lucid in Top Stock Trades once it reclaimed $17.50, then outlined its path up to the $27.50 to $29.50 area last week. In that sense, LCID stock has been money for the bulls that have stuck with it.
Now, things get a little trickier, as we are in that $27.50 to $29.50 area.
If shares dip, see that Lucid holds the 21-day and 200-day moving averages. On the upside, though, let’s see if Lucid can close above $29.81. Above $30, and this name could have some upside — potentially to $38, then possibly toward $45. But let’s start with $30 and not get too optimistic.
Top Stock Trades for Tomorrow No. 2: Uber (UBER)
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Uber (NYSE:UBER) is giving bulls a nice bounce on the day, after providing better-than-expected forecasts.
The rally has helped clear a lot of negativity on the charts, although Uber is far from being in a bullish trend. It’s a great start, though.
From here, I’d love to see Uber hold up over the 50-day moving average and the Q2 low at $43.17. Above these marks and Uber can challenge further upside levels, such as the 21-week moving average, followed by the 200-day and the $50 level.
However, should Uber lose the $43 mark, the daily VWAP and 21-day moving average are on the table, along with a potential gap-fill near $40.
Top Stock Trades for Tomorrow No. 3: AutoZone (AZO)
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AutoZone (NYSE:AZO) enjoyed a nice post-earnings pop to the upside, although it struggled to hold those gains as it faded from the session high.
Shares were again rejected from the $1,660 area, as well as downtrend resistance and the long-term 161.8% extension. That said, it’s above all of its major daily moving averages.
If AZO stock can hold $1,600, it’s likely okay on the long side. Below that mark puts its weekly low in play around $1,560. Below that mark and the 21-week moving average is in play, followed by $1,500.
On the upside, though, a close above $1,600 puts the 2021 high in play, near $1,667. Above that, and $1,700 is on the table, followed by the $1,770 area.
Top Trades for Tomorrow No. 4: Snap (SNAP)
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We’re seeing some nice strength out of Snap (NYSE:SNAP) lately. Shares were up a little more than 6% on Tuesday as the stock continues to digest its post-earnings gains from July. That’s about two months worth of consolidation.
For now, $70 has been acting as support, while downtrend resistance has been putting a slight squeeze lower on the stock.
Keep an eye on $75.63. That’s last week’s high.
If Snap can clear this level, that puts a weekly-up rotation in play and could give us a move back toward the $78 to $80 area, which has so far been resistance. Above that, and this name can start rallying once again, putting the 161.8% extension in play near $89.
On the downside, however, a close below $70 will not bode well for bulls, technically putting the gap-fill level in play down at $63.74.
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.
