5 Best Day Trading Stocks to Buy in August 2021

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Stock markets have been very volatile in 2021 which has given good day trading opportunities. Here’s the list of the five best trading stocks that you can buy in August 2021.

Day trading has become very popular given the increasing number of low-cost brokerages. Also, while some investors follow the buy and hold approach, others like to do day trading and make some quick bucks.

1. Naked Brands (NYSE: NAKD)

naked brand day trading stock

Naked Brands looks like a good day trading stock to buy in August. The stock is down 13% over the last month and now trades at a fraction of its 52-week highs. The company has a market cap of $486 million. The company has exited the Bendon operations earlier this year to focus on the e-commerce operations and the Frederick’s of Hollywood brand. It capitalized on the Reddit-driven rally earlier this year and raised a lot of cash. In its most recent update, NAKD said that has $270 million worth of cash and cash equivalents on its balance sheet. It wants to use the cash for acquisitions and to grow the online business. The company is debt-free and has an enterprise value of only around $216 million.

NAKD looks like a good day trading stock to buy

July was a bad month for penny stocks and NAKD stock also tumbled in the month. Naked Brands is trading below the 50-day, 100-day, and 200-day SMA. The 200-day SMA has been a resistance for the stock and it needs to cross above the trendline to signal an uptrend. The 14-day RSI (relative strength index) is 42.6 which is a neutral indicator.

Overall, after the massive crash from the highs, NAKD looks like a good day trading stock to buy in August.

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2. Lucid Motors (NYSE: LCID)

Lucid Motors looks like another good day trading stock to buy in August. While the stock would look overvalued from a fundamental perspective, it seems to be making a near term bottom. The company went public through a reverse merger with Churchill Capital IV (CCIV) and was among the most hyped SPAC merger of 2021. The stock is down sharply from the peaks and could be in for some upside in the short term as it provides more updates on the Lucid Air, its first model.

lucid day trading stocks

Lucid Motors’ business model has a lot of similarities with Tesla and its CEO Peter Rawlinson was a former Tesla employee. Lucid is working on an integrated business model like Tesla. However, on charging infrastructure, the two companies have chosen a different path and Lucid has partnered with Electrify America. Tesla has invested in its own charging network called the Superchargers.

Lucid Motors looks like a good day trading stock to buy in August

Lucid Motors looks like a good day trading stock to buy in August and play the expected upside in the short term. The stock has been moving in a narrow price channel which makes it a day trading stock worth looking at. The stock has a market cap of just over $36 billion.

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3. AMC Entertainment (NYSE: AMC)

AMC Entertainment is among the most popular stock among day traders. It’s the largest cinema chain in the world and the business was battered last year amid the COVID-19 pandemic. The stock fell to its all-time low earlier this year but soon rose to record highs amid pumping by Reddit traders. Like all meme stocks, AMC stock has tumbled. From a fundamental perspective, it is still not possible to build a case for AMC stock. However, if it falls a bit more from these levels, it could be worth considering.

There is a big army of retail traders who now own the majority of AMC stock. If the stock falls below the $25 price level, we could see bottom fishing in the stock. Overall, given the massive volatility, AMC looks like a good day trading stock to buy if it corrects a bit more from these levels.

Looking at the technicals, AMC has fallen below the 50-day SMA. The stock could next find support at the 100-day SMA. If the stock manages to hold the 100-day SMA, it could rebound. However, there could be more selling pressure if it fails to hold the 100-day SMA.

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4. NIO (NYSE: NIO)

Chinese electric vehicle company NIO is another day trading stock worth looking at in August. The stock is looking good on the charts and has crossed above the 50-day SMA. If the stock can hold to the price level, it would signal a technical uptrend. The demand for NIO cars is growing fast and the company is in the process of increasing the capacity to meet the growing demand. It is also launching new models and is entering new markets beginning with Norway.

NIO looks like a good day trading stock

Wall Street analysts also have a bullish forecast for NIO stock and its median target price of $59.61 implies an upside of 32% over the next 12 months. NIO looks like a good day trading stock to buy in August. If the market sentiments towards electric vehicle stocks improve, NIO could move to higher levels.

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5. Ford (NYSE: F)

Ford stock has come off its 52-week highs. While it recouped some of the losses after a positive second-quarter business update where it posted better than expected earnings and lifted its guidance, it still trades below the 2021 highs. Ford looks like a good day trading stock to buy in August. The stock looks attractive from a fundamental perspective also and should see more upside in the medium to long term as its electric vehicle plans unfold.

Ford looks like a good day trading stock to buy

Ford stock is trading above the 100-day SMA which has been a support while the 50-day SMA has been a resistance. If the stock rises above the 50-day SMA it will strengthen the uptrend. The 14-day RSI of 41.8 is a neutral indicator.

Ford stock is looking strong technically as well as fundamentally. If you are looking at a day trading stock that is also a good long term investment, Ford would fit the bill.

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About Mohit PRO INVESTOR

Mohit Oberoi is a freelance finance writer based in India. He has completed his MBA in finance as a major. He has over 15 years of experience in financial markets. He has been writing extensively on global markets for the last eight years and has written over 7,500 articles. He covers metals, electric vehicles, asset managers, tech stocks, and other macroeconomic news. He also loves writing on personal finance and topics related to valuation.