5 Best Day Trading Stocks to Invest in July 2021

US stock markets have been very volatile in 2021 which has created good day trading opportunities. What’re the best day trading stocks that you can trade in July 2021?

Unlike long-term investing, day traders mainly look at technical indicators and attempt to benefit from a stock’s short-term price movement which can either be on the downside or the upside. Thanks to the meme stock phenomenon and short squeezes triggered by Reddit group WallStreetBets, there have been plenty of day trading opportunities.

1. AMC Entertainment (NYSE: AMC)

AMC Entertainment has been a poster child of meme stocks. The stock was in an uptrend and the company capitalized on the opportunity to issue more shares. It would use the cash to bridge its cash burn and also repay some of its debt. Meanwhile, the stock now looks in a downtrend as the meme stock rally has lived its course.

67% of all retail investor accounts lose money when trading CFDs with this provider.

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) which signals short-term weakness. This could be the appropriate time to trade the stock and benefit from the expected slide. However, as the stock falls to lower levels, it can also present 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 and it went above the $28 price level. Currently, it is languishing near the $10 price level. The price level looks like a good entry for day traders and the stock should rebound from these levels.

Clover Health stock is finding strong support at the 100-day SMA which is currently at $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 it’s the fastest-growing Medicare Advantage plan in the US. Palihapitiya, who took CLOV public with one of his SPACs, believes that CLOV is a “10x idea” and called it “one of the most straightforward investments I’ve ever made.”

Analysts expect the company’s revenues to rise 21.7% in 2021 and 30.4% in 2022. Clover Health is expected to become profitable on the EBITDA level by 2023 and is a bet on the growing Medicare spending in the US which by estimates is expected to double between 2019 and 2025. The stock is currently depressed and looks like a good day trading opportunity.

67% of all retail investor accounts lose money when trading CFDs with this provider.

3. Sundial Growers (NYSE: SNDL)

Sundial Growers looks like another good day trading stock in July 2021. The stock has been moving in a narrow price channel after the sharp rise in the first quarter of 2021. The stock has been facing resistance near the $1 price level and has slumped after reaching the level.

Currently Sundial Growers stock trades below the 20-day and 100-day SMA. However, it is finding support at the 10-day SMA. Meanwhile, despite its meme stock status, SNDL is a good cannabis stock to buy. It has a massive cash pile which it is investing in other cannabis companies. It has also formed a joint venture with SAF Opportunities. Among others, the venture would look at setting up a SPAC (special purpose acquisition company) and invest in cannabis companies.

SNDL looks like a good day trading stock

SNDL stock is very volatile in intraday trading which makes it an attractive day trading stock. The stock is a good buy at lower price levels and there are several triggers that can take it higher. These include possible marijuana legalization in the US. While the company does not have operations in the US, it might look at acquisitions to enter the market.

67% of all retail investor accounts lose money when trading CFDs with this provider.

4. GameStop (NYSE GME)

GameStop is another meme stock that looks in a downtrend. The stock has been very volatile in 2021 and looks like a good day trading stock. The stock is among the most popular Reddit stocks. While it’s difficult to build a case for a long-term investment in GME stock at these prices, it’s a good stock to dabble for day trading.

Why GME is a good day trading stock

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

67% of all retail investor accounts lose money when trading CFDs with this provider.

5. Ashford Hospitality (NYSE: AHT)

Ashford Hospitality looks like another good day trading stock for July 2021. The stock has been in a downtrend but has started to look attractive. The company is going for a one-for-10 reverse stock split which has led to a weakness in the stock. That said, the reverse stock split does not change much fundamentally for the company. The reverse stock split will increase the stock price and some institutional investors might get 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 SMA. However, the stock might be getting oversold now with a 14-day RSI (relative strength index) of 28.7. RSI values below 30 signal oversold positions while values above 70 signal overbought positions.

AHT is a good reopening play and the stock should see upside in the medium to long term as travel and vacations resume. The company recently released the preliminary metrics for June 2021. While its revenues per available room rose sharply as compared to 2020, it was 37% lower than that of 2019. The stock came under pressure as the numbers were below what the market was expecting.

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

67% of all retail investor accounts lose money when trading CFDs with this provider.