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4 Top Stock Trades for Tuesday: NIO, DKNG, RKT, WKHS


top stock trades - 4 Top Stock Trades for Tuesday: NIO, DKNG, RKT, WKHS

There were mixed signals across the board last week. Is this the end of the rally? Is it a run-of-the-mill correction? The VIX jumped, and breadth was bearish but not horrendous. Bulls and bears still have something to prove, although bulls certainly won out on Monday. While they sort that out, let’s look at a few top stock trades for Tuesday.

Top Stock Trades for Tomorrow No. 1: Nio (NIO)

top stock trades for NIO
Click to Enlarge
Source: Chart courtesy of TrendSpider

The EV trade has lost some steam — sorry, charge — as these stocks have been unwinding a bit. Can Nio (NYSE:NIO) change the narrative and get the momentum flowing again? 

A few key levels jump out immediately. On the downside, the 100-day moving average wavered but ultimately held as support, which is what bulls needed to see. 

However, the $40 level also stands out — a level Nio almost hit last week. On a bearish reaction, we must see how the 100-day moving average and $40 level hold up. If NIO goes right through them, it may have a date with the 200-day moving average. 

On the upside, the $54 level stands out. Not just because it was resistance turned support, but because it also failed as support last week. It’s also roughly where the 50-day moving average comes into play. 

Above $54 puts $60-plus on the table. 

Top Stock Trades for Tomorrow No. 2: DraftKings (DKNG)

top stock trades for DKNG
Click to Enlarge
Source: Chart courtesy of TrendSpider

DraftKings (NASDAQ:DKNG) was an outperformer on Friday, even though at one point it coughed up most of its gains before rallying again toward the close. On Monday, bulls followed through with even more momentum, launching shares to new highs. 

The stock had previously put in two major highs near $64, although bulls were buying the dip aggressively on the second occasion. Those buyers are now being rewarded. 

From here, let’s see if the stock can get to the 161.8% extension from short-term range (from the February low to the February high) at $72.26. 

Above that could put a longer-term target of $82 in play, which is the 161.8% extension from the larger October range. 

On the downside, I’d love to see $64 hold as support. 

Top Stock Trades for Tomorrow No. 3: Rocket Companies (RKT)

top stock trades for RKT
Click to Enlarge
Source: Chart courtesy of TrendSpider

Rocket Companies (NYSE:RKT) also had a potent rally on Friday. However, profit-taking sapped a large chunk of the gains. Resistance near $24 didn’t help matters. 

On Monday though, bulls are bidding RKT stock right back up, taking out Friday’s high and really putting resistance to the test. 

I am looking to see if $24 holds steady and rejects RKT or if it accepts it and allows it to go higher. If it’s the former, look for continued support at the stock’s VWAP (volume weighted average price) measure. If it’s the latter, let’s see how RKT handles the recent high at $25.55. 

Above that puts the 61.8% retracement in play near $28. If RKT clears this mark, the gap-fill near $30.60 is on the table. 

Top Stock Trades for Tomorrow No. 4: Workhorse (WKHS)

top stock trades for WKHS
Click to Enlarge
Source: Chart courtesy of TrendSpider

Workhorse (NASDAQ:WKHS) shares are trying to rally on earnings, but given the absolute drumming the stock has endured lately, the rebound seems feeble. 

Still, the $15 level is clearly vital. Last week, Workhorse stock broke below this mark, but quickly reclaimed it. Tempted bulls may use last week’s low as their stop if they’re after a long position in this name. 

Above $15 is ideal, but above last week’s low is vital. If it gains momentum, an entry near current levels could prove to be a solid risk/reward, although this stock has certainly been volatile. 

On the upside, we want to see shares reclaim the 200-day moving average. Above this mark could put $25 and the 100-day moving average in play. Ultimately, bulls will want to see a gap-fill near $31, should WKHS gain any sort of meaningful momentum. 

On the date of publication, Bret Kenwell held a long position in DKNG.

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

Article printed from InvestorPlace Media, https://investorplace.com/2021/03/4-top-stock-trades-for-tuesday-nio-dkng-rkt-wkhs/.

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