4 top stock trades for Wednesday: GM, DWAC, ARKK, UNP
After a robust rebound on Monday, stocks continued to push higher on Tuesday. With that in mind, here's a look at a few top stock trades as we approach mid-week.
Top stock trades for today No. 1: General Motors
$General Motors(GM.US$ almost retested Monday's low, which would have actually been a great setup had it broken the low and reclaimed it.
In any regard, we now have an inside day with a hammer candle. An inside-and-up rotation over Tuesday's high could draw in bullish traders once again, putting this week's high in play, then possibly the $64 to $65 area.
Either that or an undercut of the two-day low could get bulls in on a reversal. Just below this week's low is last week's low as well as the 50-day moving average.
Keep in mind, this stock was north of $67 just a few days ago.
Top stock trades for today No. 2: Digital World Acquisition Corp.
$Digital World Acquisition Corp(DWAC.US$ has outsized moves and wide ranges, and has a lot of headline risk (in both directions). That said, if you can handle the volatility, perhaps it's worth a shot.
Shares are testing up into the $63.50 level, which has been resistance lately, as well as the December high at $66.31.
DWAC stock is fading from those levels now, which is not too surprising. However, if it can clear these marks, it could open the door to more upside — and possibly do so in a hurry.
On the downside, though, a break of $50 — and thus the 10-day, 21-day and 50-day moving averages — would be problematic for the bulls.
Top stock trades for today No. 3: Ark Innovation Fund
In the case of ARKK, there's a reclaim of last week's low at $82.65 with a strong finish and a continuation higher. From here, let's see how ARKK handles the key $90 level and the 10-day moving average. Above that puts the 21-day moving average on the table, followed by the $97 level.
On the downside, however, a break back below the $82.65 level is a huge caution sign and puts the low near $80 on the table.
Top stock trades for today No. 4: Union Pacific
$Union Pacific(UNP.US$ has been chugging higher until recently as it has suffered from two large daily dips.
Let's keep an eye on this week's low near $245. If the stock breaks that low in the next couple of days, it has the 50-day moving average and uptrend support just below it (blue line).
So a break of this mark and a bounce from support back up through that level — $245 — could put longs back in control with a defined level of risk.
On the upside, it needs to get back up through $248.50 and preferably, back up through $250. If it can do that, then $255-plus is on the table.
Conversely, a break and close below $243 could put $238 in play — the low from Dec. 20.
Source: InvestorPlace
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NgKennykk : Nice