Meme shares are coming off a wild week.
For those that had gotten in on the lows in January, they’d be up greater than 2,000%. But, AMC remains to be thought-about extremely speculative and there are different high-risk, high-reward shares that deserve consideration, based on two traders.
“It is at the all-time highs and normally I would never come here and say, ‘Hey guys, look at Nvidia, it’s at all-time highs, it’s a great time to buy it.’ But the reason why I like this and I put it in that momentum retail-trader category is because of the stock split coming up,” Shay stated. “Last year, what we saw with Apple and Tesla both, when their stock splits were announced, we had a massive rally that was largely due to the retail crowd.”
Nvidia’s board in May accepted a 4-for-1 stock cut up, set to enter impact July 20. In the times after Apple’s stock cut up final August, shares surged by as a lot as 7%.
Nvidia is “a solid company, great fundamentals. Technicals, it’s at the highs, but I’m looking at this to go potentially up to $750, maybe even $800, because if you look at it right now, it has this massive momentum because of the stock split,” stated Shay. “I’m trading this in the options market with a low-risk, high-reward butterfly targeting that $750 price point in the next two weeks.”
A transfer to $750 implies practically 7% upside. Shay’s larger goal, $800, would imply a 14% rally from Friday’s shut of $703.
Craig Johnson, chief market technician at Piper Sandler, named Plug Power as his high-risk, high-reward choose. The stock closed Friday at $30.58.
“This is a stock that, coming off the March lows, has risen almost 3,000%. It’s corrected 75% off the highs we had seen just a couple months ago in February, and now technically, we’ve just reversed the downtrend … and moved above our 50- and 200-day moving averages,” Johnson stated throughout the identical interview.
He added that the rationale this identify matches into his “high-risk category” is as a result of the stock group Plug Power belongs to appears to be like to be dropping momentum.
“When I go back and I look at some of our longer-term group work that we do at Piper Sandler, I have noticed that when we’ve seen 26-week momentum spikes in the overall industry group in which Plug Power fits into — we saw it in 2000 we also saw it in 2013 and we just saw it again — usually these stocks have to correct for the better part of 24 to 36 months,” stated Johnson.
He sees 125% upside for Plug and solely roughly 29% draw back to get again to its downtrend resistance degree.
Disclosure: Shay holds NVDA.