4 Top Stock Trades for Wednesday: Dogecoin, SPCE, RACE, UAA
After a down day on Monday, stocks were smacked at the open on Tuesday. The move startled traders, as the Nasdaq led the way lower. We’re at an interesting juncture where the market either needs to find its footing or probe lower prices before firming up. That said, let’s look at a few top stock trades for mid-week.
Top Stock Trades for Tomorrow No. 1: Dogecoin (DOGE-USD)
Dogecoin (CCC:DOGE-USD) remains in the spotlight, as Bitcoin (CCC:BTC-USD) continues to struggle. There’s just something about this one that investors love. In any regard, it hit new all-time highs on Tuesday.
Dogecoin was able to erupt through that 40 cent to 45 cent resistance area, ultimately clearing 60 cents for a moment. While it’s down from the session high, more upside is still possible.
Specifically, I’m looking at the 161.8% extension of the current range, up near 67 cents. Above that could put 78 cents in play, followed by a push to near $1 (with the 261.8% extension at 98 cents).
On the downside, though, a move below 40 cents and the 10-day moving average could accelerate the selling pressure.
Top Stock Trades for Tomorrow No. 2: Virgin Galactic (SPCE)
Virgin Galactic (NYSE:SPCE) has done a good job at respecting its key levels and technicals. That doesn’t mean it’s been a good holding for the bulls though. Shares went monthly-down below the April low, technically doing so on Monday.
After more weakness on Tuesday, though, Virgin Galactic reversed to the upside.
Now let me be clear: This isn’t a very healthy chart and playing this reversal would typically be a short-term cash flow trade. However, there’s a chance we could see a further recovery if the overall market cooperates.
On the upside, look for a test of the 10-day moving average, then a test of $23.94. Above that, and the 21-day moving average could put the gap-fill level and 200-day moving average on the table.
A break of Tuesday’s low will be the stop-loss for many traders.
Top Stock Trades for Tomorrow No. 3: Ferrari (RACE)
Ferrari (NYSE:RACE) reacted lower on earnings today, although we’re seeing a nice response in the stock price. Shares are bouncing off the 200-day moving average and are trying to reclaim the 50-day.
Aggressive bulls may consider being long against $199 and looking for a move above Tuesday’s high. More conservative bulls will likely wait to see if RACE stock can take out today’s high before looking for a test of the 10-day and 21-day moving averages, then fishing for a gap-fill up toward $218.
A break of $199 and close below this mark could put $180 to $185 in play. That zone has been interesting over the past 14 months.
Top Trades for Tomorrow No. 4: Under Armour (UAA, UA)
I am looking for a very simple outcome.
On the downside, watch the 10-week moving average, which has been support for several quarters. If it falters, it puts $21 and the 21-week moving average in play (how fitting).
On the upside, however, watch for a weekly-up rotation over $24.73. Above $25, and $27.50 is possible. Keep it simple.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.