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4 Top Stock Trades for Wednesday: FUBO, WFC, FUTU, DIS

top stock trades - 4 Top Stock Trades for Wednesday: FUBO, WFC, FUTU, DIS

As the last day of trading wraps up for August, keep in mind how low the volume tends to be in the days leading up to the long Labor Day holiday weekend. With that note in mind, let’s look at a few top stock trades for Wednesday.

Top Stock Trades for Tomorrow No. 1: FuboTV (FUBO)

FuboTV (NYSE:FUBO) continues to cruise to new highs on the day, as the company continues to deliver promising news. The stock has rebounded nicely from the lows, but isn’t out of the woods quite yet.

Shares remain below the 200-day moving average, but above the other major daily measures. It’s also below recent resistance (purple line).

What I want to see from here is simple: A close above the 200-day moving average and $30. That opens the door to downtrend resistance and the August high at $33.68. Above that puts the second-quarter high on the table at $35.09, followed by the gap-fill level up near $39.

On the downside, though, use caution if Fubo loses the 21-day and 50-day moving averages. Below puts the $24.50 level in play, which is must-hold support.

Top Stock Trades for Tomorrow No. 2: Wells Fargo (WFC)

Wells Fargo (NYSE:WFC) is got socked on the day, down 5.6% and breaking to new lows on the session with less than an hour to go.

In the process of Tuesday’s decline, WFC stock is breaking below the 21-day and 50-day moving averages. It’s not a great look.

From here, let’s see if the stock can find its footing around the $44 to $45 area. Not only does that zone mark the 161.8% downside extension of this potential “ABC” decline, but it’s where the topside of prior downtrend resistance comes into play.

If that area fails as support — which is possible — look for support around $42. That’s the 261.8% downside extension, as well as strong support from June and July.

On the upside, however, look for WFC stock to reclaim the 50-day moving average, then $46.85. If the stock can do that, it could put the 21-day moving average in play.

Top Stock Trades for Tomorrow No. 3: Futu Holdings (FUTU)

A recent earnings play, Futu Holdings (NASDAQ:FUTU) caught my attention as the stock is basically flat for the day.

This setup is pretty simple, which is another reason I wanted to point it out. Futu needs to reclaim and close above $100.

Not only is that a key level on the chart, but it’s where a number of moving averages (both daily and weekly) come into play. Above that could put the $118 to $120 zone in play, along with the 200-day moving average.

Below $100, though, and this week’s low at $89.81 remains vulnerable. Below that, and $85 is possible.

Top Stock Trades for Tomorrow No. 4: Disney (DIS)

Here’s a stock that keeps coming up in discussions: Disney (NYSE:DIS).

Shares traded better on Tuesday, but continue to lack that big burst of follow-through that traders are looking for.

Ever since the stock’s decline in May, it’s been in a tight $10 range, bouncing between $170 and $180. Above all of its daily moving averages now, and Disney looks like it could have potential.

The simple way to play Disney is to be long this name if it’s above the 200-day moving average. Below the 200-day could put other support levels in play — like uptrend support and $170 — but this is the simplest approach.

On the upside, however, keep an eye on $187.50, which is roughly the August high. A push above that and the 61.8% retracement is on the table. Over $190 and the $200 to $203 zone is possible.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the biedexmarkets.com.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.