What’s the next big thing on Wall Street? These days it might just be what’s trending or more specifically, receiving big-time mentions on WallStreetBets. Or not. The name in question might already be a titan of commerce.
Today let’s take a look at three such WallStreetBets stocks’ price charts and determine what’s technically hot and what’s not for your portfolio.
Reddit’s r/WallStreetBets. The seat-of-your-pants trading forum has made quite the name for itself in 2021. But you don’t need me to tell you that, right? Right.
The group behind this year’s infamous short squeeze play headlined by celebrated and reviled names such as GameStop (NYSE:GME) and AMC (NYSE:AMC) was frontpage and national nightly news fodder.
And WallStreetBets stocks’ made headlines for good reason too.
If, for no other reason, back in January at its most surreal efforts GME gained more than 2,700% in less than a month and saw its market cap swell from $1.22 billion to $22.59 billion. And you’d be nuts not to think that’s good for some well-deserved attention.
But while the media circus has cooled dramatically, the show in WallStreetBets stocks has gone on this year.
And whether or not you’re dumbstruck by the group’s persistent and often wildly volatile trading patterns in an eclectic pool of risk assets ranging from Shiba Inu (CCC:SHIB-USD) to the SPDR S&P 500 ETF Trust (NYSEARCA:SPY); those daily mentions in WallStreetBets stocks remains a thing in 2021.
Today let’s look at three larger companies making the rounds and whether these WallStreetBets stocks’ are better buys, sells or names to steer clear of based on big picture price patterns setting up on the weekly and monthly chart time frames.
WallStreetBets Stocks to Trade: Nvidia (NVDA)
Source: Charts by TradingView
The first of our WallStreetBets stocks to buy are shares of Nvidia. The graphics chip giant has come a long ways in 2021 on the back of red hot markets like autonomous vehicles, gaming, AI and crypto mining.
NVDA’s massive market cap of nearly $770 billion, which began the year at $322 billion, is a certain testament of that strength. In fact, this WallStreetBets stock is now the largest semiconductor company in the world as measured by valuation.
This WallStreetBets stock is in a slightly weaker seventh place with roughly 225 mentions following a keynote presentation by CEO Jensen Huang at the virtual GPU Technology Conference.
I’m unsure how many of those quips, hashtags and the likes are warning to take profits or even approach Nvidia shares as a short, but let’s make certain that voice of reason is out there.
Some investors will wait to re-evaluate NVDA stock’s burly wherewithal a week from now when the outfit releases its latest results for its fiscal fourth quarter. But now, the price chart in this WallStreetBets stock is stating for the record that bullish investors shouldn’t be pigs.
The illustrated monthly view of the NVDA price chart shows a couple Fibonacci-based two-step or mirror move patterns in extension and completion territory. And with a very tenuous-looking stochastics setup also in the mix, it’s high time to trim or adjust bullish positions in front of the report.
Coinbase (COIN)
Source: Charts by TradingView
The next of our WallStreetBets stocks to trade is Coinbase. The largest crypto platform in the United States went public back in April. COIN is third in mentions with a count of more than 325 on the session and amounting to an increase of nearly 300%.
That’s hardly a surprise given this WallStreetBets stock announced an earnings shortfall last night and given the active state of the cryptocurrencies these days.
Investors are focusing on the miss and sending shares of COIN lower by about 7.50% while ignoring the company’s plea to treat shares as a long-term play on the emerging digital asset market.
Yet intermediate-term investors may want to pay some mind to Coinbase’s management if this WallStreetBets stock can begin to stabilize. Technically, COIN’s weekly chart shows a well-constructed saucer or cup-shaped pattern that’s now testing the 50% retracement level within the right side of its base.
A hold of the Fibonacci level would support the idea a handle consolidation is currently forming. Should the handle continue to develop in the coming couple weeks, buyers of this WallStreetBets stock will enjoy a bit more muscle behind the purchase than simply cheap talk.
WallStreetBets Stocks to Trade: Tesla (TSLA)
Source: Charts by TradingView
The last of our WallStreetBets stocks to trade are shares of Tesla. I haven’t saved the best for last, but at a market cap of $1.03 trillion and the top spot in mentions at more than 670, it is a vehicle that’s caught a lot of interest!
A great deal of the noisy ruckus in TSLA stock is regarding Elon Musk’s social media “put it to a vote” sale of 10% of his Tesla holdings.
It’s not clear whether the EV giant’s CEO has begun what many see as a necessitated tax burden divestiture, but investors aren’t taking any chances. This WallStreetBets stock is down 16% since the news broke earlier this week.
The good news is insider sales like Musk’s aren’t typically able to continue influencing shares.
When the selling by Musk in this WallStreetBets stock is done, it’s done. And when it’s done for reasons other than the bearish company-specific variety, it’s generally an opportunity to buy on weakness.
Technically, the monthly view of TSLA is also looking largely agreeable with our more optimistic assessment of this WallStreetBets stock.
Shares have pulled back near a zone test of the 38% retracement level tied to this summer’s corrective bottom and prior all-time-high which setup a cup-shaped breakout in October.
With TSLA’s price action also trending off a fairly benign uptrend of around 45 degrees and stochastic bullishly aligned in neutral territory, this WallStreetBets stock should be on investors radars for buying.
On the date of publication, Chris Tyler 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.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
