It was a mostly quiet day in the market on Tuesday — save for the dip in small caps — as investors ride the indices to new highs ahead of a Fed Day on Wednesday. That said, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Penn National Gaming (PENN)
Penn National Gaming (NASDAQ:PENN) has been on fire for weeks, but it wasn’t too hot today. And as we closed out Tuesday, shares were down almost 9%.
However, the stock is dipping right into the 10-day moving average. If we don’t get a bounce from here, there’s plenty of support below. The only downside is that that support is somewhat spread out.
I would have my eye on the 21-day moving average and VWAP measure near $119.50. Below that, and the 10-week moving average comes into play near $114. That has been solid support for a while now.
Below the 50-day moving average and perhaps PENN stock can unwind further, down toward the $97 to $100 area where we would likely get a solid dip-buying spot.
On the upside, however, let’s see if it can take out the $129 level. Above puts the all-time high back in play.
Top Stock Trades for Tomorrow No. 2: CrowdStrike (CRWD)
On the plus side, shares are consolidating nicely over the $193.70 area, which came from a high-volume gap-up session.
On a bullish reaction to earnings, I want to see CrowdStrike clear and hold $220. That puts it above multiple key moving averages, as well as the 61.8% retracement from the current range.
On the downside, a break of $193.70 and the 100-day moving average puts the recent low in play near $169. Below that low and the 200-day moving average is in play.
With CRWD stock above several key long-term moving averages, but below other short- to intermediate-term moving averages, it’s hard to have too much conviction in the stock one way or the other, at least from a technical perspective.
Therefore, as is usually the case anyway, we want to see how CrowdStrike reacts to the event rather than predict its course beforehand.
Top Stock Trades for Tomorrow No. 3: Rite Aid (RAD)
Rite Aid (NYSE:RAD) has seemingly become a favorite among traders, Reddit-oriented or not. The stock made a nice move on Tuesday and is doing well so far this week.
Shares are rallying into a notable area, though. First, it’s hitting that $27.60 zone that rejected RAD stock earlier in the year. Second, it’s running into the 50-week moving average, which is also acting as resistance.
If it can clear $30, look for a test of the 2021 highs near $32.50. Above that could put the 261.8% extension from the Q1 2021 range in play, up near $35.25.
On the downside, though, beware of a close below the 200-week and 10-week moving averages.
Top Trades for Tomorrow No. 4: CleanSpark (CLSK)
CleanSpark (NASDAQ:CLSK) was looking good coming into Tuesday. However, a secondary offering on Monday evening sacked its momentum, causing shares to plunge almost 23% on the day.
However, not all hope is lost.
First, look at just how tight of a range it traded today. While bears may argue it couldn’t garner much upside momentum — which is true — the shorts couldn’t even get it back below last week’s low or break the 100-day moving average. A close below that mark on a weekly basis may be a solid reference low for bulls willing to take a shot here.
We could see $25-plus if the stock starts to come to life. Even if it can’t fill the gap up toward $28.50, a move to the 10-day and 21-day moving averages could yield solid short-term gains.
Use caution with this one if you’re trading it — it didn’t fall 20% in a single day for nothing. That said, it held in nicely despite the plunge.
On the date of publication, Bret Kenwell held a long position in CLSK.