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4 Top Stock Trades for Wednesday: PLTR, SPCE, AMZN, RIOT

top stock trades - 4 Top Stock Trades for Wednesday: PLTR, SPCE, AMZN, RIOT

The tired market is finally starting to show a little vulnerability. That’s not bearish, it’s just a fact. The S&P 500 had rallied in 16 of 18 sessions coming into Tuesday. So, it needs a pause. With that in mind, let’s look at a few top stock trades in the meantime.

Top Stock Trades for Tomorrow No. 1: Palantir (PLTR)

Daily chart of PLTR stock
Click to Enlarge
Source: Chart courtesy of TrendSpider

Bulls really wanted this stock to perform better after earnings. But the truth is, it remains tough sledding for growth stocks. That’s what we thought about Palantir (NYSE:PLTR) stock ahead of earnings, as it does have a high valuation even if the growth is impressive.

With Tuesday’s post-earnings slump, Palantir shares are breaking below all of its key moving averages. That’s going to make it a no-go on the long side. We either need it back above the 50-day moving average or we need a deeper dip.

If the stock dips from here, bulls will have to see how it handles the $23 level — provided it dips that far. A close below $23 puts critical support on the table at $21.

Top Stock Trades for Tomorrow No. 2: Virgin Galactic (SPCE)

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

Virgin Galactic (NYSE:SPCE) is rallying on earnings, which is the first step in a higher move. However, it’s still struggling with some key areas.

Specifically, SPCE stock is still stuck in its declining channel. Furthermore, it’s struggling with that prior gap-fill level near $21.75. The former is more important than the latter, in my opinion.

If SPCE stock can break out over channel resistance, it puts the 50-day moving average on the table. Above that could open up a quick squeeze to the $26 to $27 area. If Virgin Galactic really takes off, $30 to $31 could be on the table.

On the flip side, though, say SPCE stock stock is rejected from the current area. That puts the 10-day and 21-day moving averages in play. Above these two measures, and the stock is still okay. Below these measures, however, and that narrative changes.

It would put last month’s low in play near $18.

Top Stock Trades for Tomorrow No. 3: Amazon (AMZN)

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

On Monday, Amazon (NASDAQ:AMZN) stock was rejected by the $3,550 breakout level. The false breakout was discouraging. But just a day later, and AMZN stock gave it another try.

In the process, shares are going daily- and weekly-up and hitting its highest level since July.

The setup is simple. Over $3,550 is bullish, and the more time AMZN stock spends above this level, the higher the odds become that it retests the $3,750 area. Above $3,750, and the $3,900 to $4,000 area could be next.

However, if Amazon is ultimately rejected from the breakout level, keep an eye on last month’s high at $3,479. As long as it can stay above that mark, AMZN stock bulls are okay.

Top Trades for Tomorrow No. 4: Riot Blockchain (RIOT)

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

Riot Blockchain (NASDAQ:RIOT) trades with a correlation to Bitcoin (CCC:BTC-USD), the latter of which we were looking to make new highs. Well, Riot hasn’t joined that club, but it is trading better.

Up five in the last seven sessions, Riot has been pushing higher. However, it’s now struggling with the key area near $40. If it can take out Tuesday’s high at $42.84, it could put $50 in play. Above $50, and the 61.8% retracement is on the table near $57.

On the downside, though, let’s see if the 200-day moving average is support. Remember, this stock will trade with a high correlation to Bitcoin. If the latter falls, Riot will too. If it rallies, then we can see some upside.

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/2021/11/4-top-stock-trades-for-wednesday-pltr-spce-amzn-riot/.

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