After a strong rally on Monday that sent the S&P 500 to new all-time highs, stocks took a breather on Tuesday. Let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Tesla
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Tesla (NASDAQ:TSLA) is at an interesting juncture right now. This morning I was looking for a potential reversal in the stock and it gave us a pretty quick cash-flow trade.
That’s even after two separate price-target hikes this morning.
Coming into today, shares were up 26% in a four-day stretch, so a rest was more than warranted.
As it stands though, Tesla stock is running into the 61.8% retracement and downtrend resistance (blue line). If the stock can rotate over $1,120 (the two-day high), it could open the door to the $1,175 area, which has been resistance over the last few months. Above $1,200 and the all-time high near $1,240 is on deck.
A move below the two-day low at $1,070 puts the daily VWAP measure in play, followed by the 50-day moving average. Below the 10-day and 21-day moving averages puts $1,000 back in play.
Top Stock Trades for Tomorrow No. 2: Amazon
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We’re using a weekly chart with Amazon (NASDAQ:AMZN), given the long-term range this one has been stuck in.
On Monday, shares tried to rotate over the 10-week moving average and go weekly-up over $3,442. However, Amazon stock reversed lower and couldn’t hold the gains.
Keep an eye on this level now.
If Amazon can again push through it, this week’s high is in play near $3,459. Above that and we could see a bigger push into the $3,500 to $3,550 area.
On the downside, a move below this week’s low could put the $3,300 to $3,330 area back on the table, along with the 50-week moving average.
Top Stock Trades for Tomorrow No. 3: Digital Turbine
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Digital Turbine (NASDAQ:APPS) grabbed investors’ attention on Tuesday, rallying 13.5% at today’s high. The rally followed a six-day win streak where shares gained 28%.
However, the stock is now down on the day. That’s not a good look.
Admittedly, the chart is a bit busy, with a bevy of daily and weekly moving averages. However, I wanted to illustrate just how crowded this area is on the chart, between $65 and $70.
In that range we have the 50-day and 200-day moving averages, as well as the 50-week and the 21-week moving averages and the weekly VWAP measure.
The good news? If APPS can clear this week’s high and $70, then we could see an even larger rally. Specifically, the gap-fill up near $88 sticks out to me, followed by the low-$90s resistance area.
On the downside, let’s see if the 10-day moving average can act as support, followed by the backside of prior downtrend resistance (blue line).
Top Trades for Tomorrow No. 4: Boeing
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It’s been a while since we’ve talked about Boeing (NYSE:BA), but the chart caught my attention today.
After making new 2021 lows last week, Boeing has rallied in four of the past five trading sessions. In that rally, shares reclaimed the key $200 level, as well as the 10-day and 21-day moving averages.
However, shares are running into the daily VWAP measure, the declining 50-day moving average and downtrend resistance (blue line).
If Boeing can clear the 21-week moving average, it has a clear shot up to the 200-day moving average and the $230 area, which has been resistance.
If it can’t clear these measures, see that the stock stays above $200 and the 10-day and 21-day moving averages. Below these marks and the lows are back in play.
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.
