4 Top Stock Trades for Tuesday: TSLA, AMD, LCID, GME

top stock trades - 4 Top Stock Trades for Tuesday: TSLA, AMD, LCID, GME

On Monday, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 hit new all-time highs and there were plenty of big movers in the mix. With that in mind, let’s take a look at some top stock trades now.

Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)

Top stock trades for AMD
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Source: Chart courtesy of TrendSpider

I have been watching and waiting on Advanced Micro Devices (NASDAQ:AMD) for days now. The stock rallied hard into earnings and bulls were riding this one following a weekly-up rotation a few weeks ago.

However, after such a strong run, we needed to stalk this one with some patience — and that patience has finally paid off.

I had AMD on watch as shares were gapping lower in Monday’s pre-market trading session. The stock gave us the exact dip we were looking for, opening near the 10-day moving average. Now ripping higher, AMD stock has given us a daily-up rotation too, while trying to clear the prior high, near $122.50.

If it can do that, it can challenge the $127 to $128 area. Above that area likely opens the door the 161.8% extension near $137.

On the downside, however, a break of $120 — or worse, this week’s low — could put the $115 area and the 21-day moving average in play.

Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)

Daily chart of TSLA
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Source: Chart courtesy of TrendSpider

Tesla (NASDAQ:TSLA) is ripping again on Monday, up more than 8% to more new all-time highs. With a market capitalization well over $1 trillion, it’s one of the most valuable companies in the world.

Sorry bears, overvalued or not, this stock has been an absolute monster. This is why we do not fight trends.

In any regard, shares gapped higher by about 8.5% on the day, but on the pullback, Tesla stock respected the prior all-time high (from Friday) and the 161.8% extension. These measures combined as support as shares now press higher toward $1,200. That mark is one of my upside targets, although $1,193.50 is pretty darn close.

At some point, TSLA stock will need a rest, in which case, we’ll be looking to see how it holds up near the eight-day and 10-day moving averages. On the upside, over $1,200 could put $1,250 to $1,260 in play, because with Tesla, you just never really know how far it can run. I know many were looking for this train to stop at $1,000 if it could get there.

Top Stock Trades for Tomorrow No. 3: Lucid Motors (LCID)

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

While we just talked about Lucid Motors (NASDAQ:LCID) last week, the action begs for further discussion.

The stock was up as much as 8.6% earlier in the day. However, shares of LCID stock actually finished down 1.2% on Monday. Simply put, $40 and the 50% retracement continue to reject the stock.

On the plus side, we have an inside day forming, with a nice two-day low at $35.43. A break of this level opens up more downside and should have bulls shifting to a more cautious state until LCID stock finds it footing.

On the upside, though, if shares can clear $40.50 and the recent high at $41.60, it could put the 61.8% retracement on the table.

Top Trades for Tomorrow No. 4: GameStop (GME)

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

GameStop (NYSE:GME) is finally making some noise again after going quiet for quite some time.

The stock has been forming a solid wedge lately, marked by a series of higher lows and lower highs. However, it has held up above its 200-day moving average and is now clearing its other key moving averages and VWAP measures.

Currently above $200, bulls are looking for more. That’s as it goes daily-, weekly- and monthly-up in Monday’s session, all while clearing wedge resistance. The action is quite impressive.

From here, let’s see how GME stock handles the $216 to $220 area. Above this zone opens the door to the third-quarter high at $231.44. Above that, and $250 is on the table, along with the 61.8% retracement of the current range near $268.50.

While I would typically apologize for so throwing so many levels out there, you never really know with a stock like GameStop, which could hit all of them in a few days — or less.

On the downside, however, it’s okay if GME stock doesn’t hold the VWAP measure or $200. But we don’t want to see it lose the 20-day and 50-day moving averages from here.

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.


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