It was a relatively calm day in the markets, as investors continue to sort things out with equities near the highs. That said, let’s look at some top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Nio (NIO)
Nio (NYSE:stock-ticker”>NIO), and really the whole EV space, has been super resilient. You can see that on the daily chart here, even though shares fell about 1% on the day.
After shares broke out over resistance — which we were looking for in late December — the stock has been on a powerful run, hitting new all-time highs on Monday.
Despite a secondary offering, Nio stock is holding up pretty well.
On a dip, see if the stock fills that gap toward $59. Below that and the prior high at $57.20 could be in play, followed by the second gap at $54.60 and the 10-day moving average.
Above the current high puts the 161.8% extension in play near $69.
Top Stock Trades for Tomorrow No. 2: Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:stock-ticker”>AMD) has been finicky, giving us a series of false breakouts and breakdowns.
On Monday, shares ripped to new highs, but couldn’t close over its December highs. Then shares flushed lower on Tuesday, down about 2% on the day.
Dip-buyers may step in on Tuesday’s decline, with the 10-day and 21-day moving averages near current levels, along with VWAP support. Below puts $89 to $90 on the table.
If it holds, look for a retest of $98 resistance, followed by $100-plus.
Below last week’s low, and the 100-day moving average could be in play — along with the 61.8% retracement.
Top Stock Trades for Tomorrow No. 3: Facebook (FB)
Many of the FAANG names have been struggling, Facebook (NASDAQ:stock-ticker”>FB) included. This stock started rolling over a few days ago, before flushing lower on Monday and Tuesday.
I flagged this name early on Tuesday, warning that a green-to-red move — a flip from positive territory to negative territory after a poor prior session — could be in the cards. There was time to adjust if long and time to get short if bearish.
Now down into the $250 area, support could be coming into play soon. The prior breakout level is near $248, while the 200-day moving average is around the same area.
Should it bounce, look to see if it can push through the declining 10-day moving average. If it can, the 21-day and 100-day moving averages may be in play. If it can’t, the bulls don’t have much strength yet.
Top Trades for Tomorrow No. 4: DoorDash (DASH)
DoorDash (NYSE:stock-ticker”>DASH) tumbled out of the gate from its December IPO. After the first day of action, shares fell for six straight sessions and in 11 of 14 sessions.
After taking out its post-IPO-day high, shares are backing off a bit. If we can get an acceleration over today’s high and a close over $200, the 161.8% extension could be on the table up near $234.
On the downside, though, let’s see how a dip to the 61.8% retracement fares. Additionally, the 10-day moving average may act as support on a pullback.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.