5 Best Day Trading Stocks to Invest in July 2021

US stock markets were very volatile in 2021, which has created good day trading opportunities. What Are the Best Day Trading Stocks to Trade in July 2021?

In contrast to long-term investments, day traders mainly look at technical indicators and try to profit from the short-term price movement of a stock, which can either go down or up. There have been plenty of day trading opportunities thanks to the meme stock phenomenon and short squeeze triggered by Reddit group WallStreetBets.

1. AMC Entertainment (NYSE: AMC)

AMC Entertainment was a figurehead of meme stocks. The stock was in an uptrend and the company took the opportunity to issue more shares. It would use the money to bridge its cash outflow and also pay off some of its debts. Meanwhile, the stock looks now on a downtrend as the meme stock rally has begun.

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Why AMC is a good day trading stock

AMC Entertainment has fallen below the 10-day, 20-day and 30-day SMA (simple moving average), signaling short-term weakness. This could be the right time to trade the stock and capitalize on the expected price slide. However, if the stock falls to lower levels, it can also provide opportunities to go long. Overall, AMC looks like a good day trading stock for July.

2. Clover Health Investments (NYSE: CLOV)

Clover Health went public through a SPAC (Special Purpose Acquisition Company) merger. The stock was also targeted by Reddit groups, rising above the $ 28 price level. It is currently close to the $ 10 price level. The price level appears to be a good entry point for day traders and the stock should rebound from these levels.

Clover Health stock is finding strong support on the 100-day SMA, which is currently $ 9.59. The stock should rebound from these levels and move towards the 50-day SMA, which is currently at $ 10.45.

Clover Health looks like a good fundamentally strong stock

Clover Health is a fast growing company and the fastest growing Medicare Advantage plan in the US. Palihapitiya, who brought CLOV to the public with one of their SPACs, believes CLOV is a “10x idea” and called it “one of the easiest investments I’ve ever made”.

Analysts expect the company’s earnings to grow 21.7% in 2021 and 30.4% in 2022 in 2019 and 2025. The stock is currently depressed and looks like a good day trading opportunity.

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3. Sundial Growers (NYSE: SNDL)

Sundial Growers looks like another good day trading stock as of July 2021. After rising sharply in the first quarter of 2021, the stock moved in a narrow price channel on the level.

Sundial Growers’ shares are currently trading below the 20- and 100-day SMA. However, he does find support with the 10-day SMA. Meanwhile, despite its meme stock status, SNDL is a good cannabis stock to buy. It has a huge pile of money that it invests in other cannabis companies. It has also established a joint venture with SAF Opportunities. Among other things, the company would consider forming a SPAC (Special Purpose Acquisition Company) and investing in cannabis companies.

SNDL looks like a good day trading stock

The SNDL share is very volatile in intraday trading, which makes it an attractive day trading share. The stock is a good buy at lower price levels, and there are several triggers that can take it higher. This includes a possible legalization of marijuana in the US. Although the company does not operate in the US, it may consider acquisitions to enter the market.

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4. GameStop (NYSE GME)

GameStop is another meme stock that is looking in a downtrend. The stock was very volatile in 2021 and looks like a good day trading stock. The stock is among the most popular Reddit stocks. While it is difficult to make a long-term investment in GME stock at these prices, it is a good stock to try for daytime trading.

Why GME is a good day trading stock

GME stock is in a technical downtrend. The stock has fallen below the 50-day SMA, which was a strong support. It is also trading below the 10-day, 20-day and 30-day SMA, which also signals a short-term downtrend. Short term traders can capitalize on the downtrend in GME stock.

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5. Ashford Hospitality (NYSE: AHT)

Ashford Hospitality looks like another good day of trading in July 2021. The stock is on a downtrend but is starting to look attractive. The company is targeting a reverse stock split of 1:10, which has resulted in weakness in the stock. However, the reverse stock split doesn’t change much for the company. The reverse stock split will increase the share price and some institutional investors may be interested in the stock.

AHT is a good day trading stock for July

AHT stock has fallen below the 50-day, 100-day, and 200-day SMAs. However, the stock could be oversold now with a 14-day Relative Strength Index (RSI) of 28.7. RSI levels below 30 indicate oversold positions, while levels above 70 indicate overbought positions.

AHT is a good reopening game, and the stock should rise in the medium to long term as travel and vacation resume. The company recently published its preliminary key figures for June 2021. While revenue per available room rose sharply compared to 2020, it was 37% below 2019. The stock came under pressure as the numbers fell short of market expectations.

However, the negatives now appear to be baked into prices and AHT stock should rebound. The massive intraday volatility makes AHT a good day trading stock for traders.

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source https://thedailytradingnews.com/5-best-day-trading-stocks-to-invest-in-july-2021/