It was a bumpy day on Wall Street, as sector rotation continues to create a choppy trading environment. With that in mind, let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Gold ETF (GLD)
What an excellent trade gold has been on the long side. But now longs are feeling the pain of sticking around for too long.
Given the yellow metal’s rapid rise, it’s no surprise the SPDR Gold Trust ETF (NYSEARCA:GLD) took it on the chin. However, the magnitude of the dip may have caught some off-guard.
In any case, the stock has all but filled the July gap and has traded down to the 20-day moving average. Near there now, a reversal would be ideal, or at the very least, some stabilization.
If it fails, it likely puts the 50-day moving average in play. Back over the 20-day, and the stock can continue filling the new gap back up toward $190.
Top Stock Trades for Tomorrow No. 2: Twitter (TWTR)
Twitter (NYSE:TWTR) shares are bouncing around on the day, stuck between $39 resistance and the 20-day moving average.
Bulls would love to see TWTR push through resistance and make a run higher. If it can, it could put a move up into the low $40s in play. It’s hard to get too bullish though without a close above $39.
However, a break of $36 would be discouraging. That drops Twitter below uptrend support and the 20-day moving average. Not to mention, $36 has played a role of its own throughout 2020.
Below puts the 50-day moving average in play, potentially followed by the 200-day moving average.
Top Stock Trades for Tomorrow No. 3: Boeing (BA)
Boeing (NYSE:BA) has caught some momentum as of late. The boost has pushed shares above the 20-day and 50-day moving averages, as well as downtrend resistance (blue line).
So, what now?
Let’s see if this one can gain momentum to $200. This action has been great for short-term bulls who hopped in on last week’s reversal.
Back below the 20-day and 50-day poses a problem, though. It will put $165 back in play, followed by the July low.
Over $200 and Boeing could really gain some altitude, but let’s start with a move to this mark. If it gets there, we can re-evaluate.
Top Stock Trades for Tomorrow No. 4: Visa (V)
Visa (NYSE:V) wants to break out over $200 resistance so bad — but the move just can’t stick!
Here’s what to watch on this one, and it’s super simple. A close over $200 puts two main upside levels in play. That’s the gap-fill up toward $207 and the February high near $215. But we need the close over $200, first.
On the downside, the 20-day and 50-day moving averages haven’t been much of a factor. Instead, keep an eye on uptrend support (blue line). Below this mark puts the 200-day moving average on the table.
That would likely be a solid buying opportunity, with a close below $184 unraveling the trade and giving investors a decent risk/reward setup.
Top Stock Trades for Tomorrow No. 5: Nio (NIO)
Nio (NYSE:NIO) initially moved higher on earnings, but has since turned lower. Shares are off more than 8.5%, but keep in mind, the stock has rallied more than 500% from the March lows.
Keep an eye on last week’s low at $12.42 and uptrend support (blue line). Below both puts the 10-week moving average in play, followed by the July low at $10.46. If Nio closes below that, it could fill the gap down toward $9.38.
On the upside, look for a rotation back up through the prior 2018 high at $13.80. About puts $15 to $16 resistance in play.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret did not hold a position in any of the aforementioned securities.