4 Top Stock Trades for Wednesday: DKNG, PENN, PYPL, XL

Top stock trades - 4 Top Stock Trades for Wednesday: DKNG, PENN, PYPL, XL

Stocks continue to maintain their gains as investors look for more reasons to stay long. Will we see a pre-earnings push? It’s possible. Until then, though, let’s look at a few top stock trades.

Top Stock Trades for Tomorrow No. 1: DraftKings (DKNG)

Top stock Trades for DKNG
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Source: Chart courtesy of TrendSpider

DraftKings (NASDAQ:DKNG) found itself in the news today as New York remains in the headlines for online sports betting. Given its massive market potential, any news on this front has the potential to really move this stock. Same with the stock we’ll discuss next.

Shares are moving nicely off the 50-day moving average and continue to hold up over $56.75. However, DKNG stock is struggling with the prior October high near $64 and the 10-day moving average.

If we can get a weekly-up rotation over $64.72, then this stock can really fly. Not only would that give us a nice rotation setup, it would put DraftKings over the two levels I just said were giving it trouble.

That would put the 21-day moving average in play, followed by $70-plus. On a move below this week’s low and the 50-day moving average, sub-$60 is possible.

Top Stock Trades for Tomorrow No. 2: Penn National Gaming (PENN)

Top stock Trades for PENN
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Source: Chart courtesy of TrendSpider

Like DraftKings, Penn National Gaming (NASDAQ:PENN) often comes up in these types of discussions. However, the reopening trade also impacts Penn as a casino operator.

In any regard, the stock is giving us a mixed picture and the ability to trade it either long or short — sort of like the setup in Canopy Growth (NYSE:CGC).

On Monday, the weekly-up rotation was rejected by the 10-week moving average. For now, the 21-week moving average is support. Something has to give going forward.

If shares clear the 10-week moving average and last week’s high, it can push to the $116 to $120 area. If it breaks $100, last week’s low is in play. Below that, and Penn can hit some turbulence.

Top Stock Trades for Tomorrow No. 3: PayPal (PYPL)

Top stock Trades for PYPL
Click to Enlarge
Source: Chart courtesy of TrendSpider

PayPal (NASDAQ:PYPL) has an interesting setup as tech comes back into focus. Shares are trying to rotate higher — and are — but still face overhead resistance.

Specifically, PayPal is clearing last week’s high with some impressive price action. I flagged it live earlier in the morning. However, it’s running into a key level at $254.50, as well as the 50-day moving average.

This presents an obstacle, but also an opportunity.

It’s an obstacle in that it’s obviously resistance. However, should shares clear $256, it opens the door for a potentially strong run. It could put $275 or even higher in play in that scenario.

If the $255 to $256 area acts as resistance, it puts the 10-day and 21-day moving averages in play as the most nearby support level.

Top Trades for Tomorrow No. 4: XL Fleet (XL)

Top stock Trades for XL
Click to Enlarge
Source: Chart courtesy of TrendSpider

XL Fleet (NYSE:XL) has been under a lot of pressure lately, cascading from a high near $35 to a recent low near $7.50. Right now, we’re looking at a potentially standard five-wave decline.

At the same time, that’s far from it giving investors the all-clear signal.

Let’s see how well the stock can bounce from here. My main focus on the long side would be $9.50 and the 10-day moving average. Above both of these marks and $10-plus is possible as XL stock has the potential to bottom and begin repairing its chart.

On some real momentum, seeing $12.50 to $13.25 would be a great move, putting a key level and the 200-day moving average in play.

A daily close below $7.50 and this one can head lower.

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/2021/04/4-top-stock-trades-for-wednesday-dkng-penn-pypl-xl/.

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