Stocks to Watch August Week 2
These are the top stocks to watch for the second week of August. These picks should be taken as opinion and should not be considered financial advice. As always, do your own research before making any investment decisions.
Tesla (TSLA)
When looking at the chart for TSLA, I notice a few things. The first is the fact that the chart has coiled, or tightened its price movements since May. This is great as it moves within the wedge, we have drawn. The second thing I notice is the fact that we have broken out from our wedge. As we broke out price was also able to hit one of our support and resistance lines, and bounced nicely into an uptrend.
Executing the trade
Entry
When looking at our second highest support and resistance line, (white line at ~$700) the setup is perfect for a bounce from that line, to confirm and continue the uptrend. Look to see a strong green candle to confirm this trading thesis. If price does not show a strong bounce from these levels, I would wait to enter the trade until we come back down to the lower trend line.
Exit
In terms of how to exit this play, it truly depends on how long you wish to hold. In the near term, price should continue towards our upper resistance line (~$770) and that would be a great take profit zone. In the long term, or if price breaks-out from the top resistance line, we could potentially see price move towards all time highs near $900. Once again this all depends on your trading time frame.
Bitcoin Plays MARA/RIOT
As the crypto world continues to rally, we will continue to see volatility in both of these crypto mining plays. These make these great tools for short term swing and day trades, as we don’t want to hold them long term but can take advantage of the large fluctuations in price day over day.
Executing Trades
When looking at the 5 min chart above its very easy to tell that bitcoin and crypto as a whole have tons of momentum. Making these types of trades can lead to quick profits in short periods of time. in the most basic sense of things, you should wait for your green line (9 moving average) to be above your red line (50 moving average). You should also wait for a 5 minute candle to open and close above that green line, we call this a confirmation candle. Although I am just pointing out this play as it should be a consistent mover throughout the week. There are lots of ways to trade it, and lots of ways to make money.
DVAX
I have created a very in depth review of this company that you can find here. DVAX has lots of news coming in the next few months including multiple phase 3 trials for their covid vaccines partners coming out, as well as multiple many of those partners applying for Emergency Use Authorization. There is much more within that article and would highly recommend you check it out.
Pinterest (PINS)
Pinterest suffered a massive beatdown when they released earnings in the end of July Dropping almost 20% in a single day. This reason for this drop, in my opinion, was due to the fact that the amount of users in the united states dropped by 5% quarter over quarter. If you are to look deeper into these numbers, you will understand that this was a stupid beat down by wallstreet. Although user base dropped 5% the amount they made per user doubled. 100 users x $5 = $500. 95 Users x $10 = $950. Which is truly better? The also saw plenty of growth Internationally, and are continuing to see increases in revenue.
Executing Trade
I believe that this recovery may take a while, and view this is a 4-8 month type play. Pinterest gained a lot of exposer throughout the pandemic and the real question is if they can generate a better paying customer base, and if people will continue to use the internet ;). Stock Price seems to have hit support though I am not convinced as it was a pretty weak pop, look to see some choppiness before we move higher.