Luke Lango Issues Dire Warning

A $15.7 trillion tech melt could be triggered as soon as June 14th… Now is the time to prepare.

Tue, June 6 at 7:00PM ET

4 Top Stock Trades for Wednesday: MU, GOGO, ONDS, CHPT

Top stock trades - 4 Top Stock Trades for Wednesday: MU, GOGO, ONDS, CHPT

The bulls were enjoying the finish to last week, but these past few days haven’t been easy. The market was under significant pressure on Tuesday, as investors keep sniffing for some top stock trades. With that in mind, let’s take a look at a few.

Top Stock Trades for Tomorrow No. 1: Micron (MU)

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

Micron (NASDAQ:MU) reported earnings after the close. In the second quarter, the $76 area was acting as support, while Micron was still above its 200-day moving average.

Neither observation is true on Tuesday.

Micron is below the 200-day moving average, while the $76 area has most recently served as resistance. If bulls want to change the narrative, they at least need to get the stock north of $76.41 and the 21-week moving average.

If they can do that, it opens the door to the 200-day moving average and downtrend resistance (purple line).

On the downside, though, keep $71.11 and $68.81 in mind. Those are the September and August lows, respectively. A break of the former puts the latter in play, while a break of the latter thrusts MU stock into no man’s land.

Top Stock Trades for Tomorrow No. 2: Gogo (GOGO)

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

Long-term Gogo (NASDAQ:GOGO) bulls were vindicated on Tuesday. While the market is getting slugged, this stock is exploding higher after management again upped the company’s long-term financial outlook.

It sent Gogo rocketing through the 61.8% retracement and above the Q2 high near $15. It’s now imperative — to me at least — that Gogo holds above the $15 mark going forward. Technically, though, as long as the stock is above $14.15, it’s okay.

For now, the 2021 high at $17.23 remains the next target, followed by $20, then the 161.8% extension up near $22.

Congrats to the patient investors in this one.

Top Stock Trades for Tomorrow No. 3: Ondas (ONDS)

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

Gogo isn’t the only stock that’s running on better-than-expected news from the company. Ondas (NASDAQ:ONDS) shares ripped higher too on promising aspirations for the future.

The stock cleared the key $8.36 level, as well as the 200-day moving average. Make no mistake, this is a big change in tune for the stock, and the charts reflect it. Put another way, this is now the bulls’ game to lose.

That said, it’s still struggling with the $9.50 level and the weekly VWAP measure. Clear both of those marks and $10-plus is certainly doable. Above $12, and the 61.8% retracement could be on the table near $12.

On the downside, however, I want to see the 200-day moving average hold as support and need to see $8.36 hold as support, should Ondas dip that far.

Top Trades for Tomorrow No. 4: ChargePoint (CHPT)

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

ChartPoint (NYSE:CHPT)  made a nice move to the upside on Tuesday, another show of relative strength in a market full of red today. That said, it hasn’t been a great ride lately.

If the stock can close above the 10-day and 21-day moving averages, then it’s possible we see a larger move to the upside.

Many traders won’t touch CHPT stock and I don’t blame them. For those that do, watch $19.50. That has been strong support for several quarters now. Losing this level and failing to reclaim it spells trouble for this name.

Above the 21-day moving average puts the 50-day in play, followed by the $25 to $26 area.

On the date of publication, Bret Kenwell held a long position in ONDS and GOGO. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC