4 Top Stock Trades for Tuesday: Dogecoin, TTD, CLSK, WKHS


top stock trades - 4 Top Stock Trades for Tuesday: Dogecoin, TTD, CLSK, WKHS

The Dow Jones Industrial Average hit another new all-time high, while growth stocks remain in a brutal bear market. That said, let’s look at a few top stock trades — starting with a cryptocurrency.

Top Stock Trades for Tomorrow No. 1: Dogecoin (DOGE-USD)

Top stock trades for Dogecoin
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Source: Chart courtesy of TrendSpider

We looked at Dogecoin (CCC:DOGE-USD) last week, so this is a pretty quick update for us. However, this cryptocurrency has been all over the map, so it’s worth revisiting it.

Dogecoin gave us the move we were looking for, which was a rally up to the 161.8% extension. It did extend beyond this mark a bit, but that was followed by a sharp selloff over the weekend.

However, the stock bounced right from the support zone we were watching. With more weakness on Monday, this support zone is going to be put to the test for the second time in as many days.

Keep an eye on the zone between 40 cents and 44 cents. More specifically, keep an eye on the 21-day moving average. A move below all of these marks could put the 10-week moving average in play.

On the upside, a move back through the 161.8% extension puts the all-time high in play, followed by near 79 cents.

Top Stock Trades for Tomorrow No. 2: The Trade Desk (TTD)

Top stock trades for TTD
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Source: Chart courtesy of TrendSpider

The Trade Desk (NASDAQ:TTD) is a fantastic company, but like I said at the top, growth stocks are in a bear market. The market doesn’t care if it’s going to be a great company tomorrow. It’s looking for any flaw it can find to justify burying it today.

That’s exactly what the market did, sending shares down nearly 30% at one point on the day. Overall, TTD stock officially hit the “down 50%” mark from its highs.

This is a tough one. While shares can go lower, it’s already down pretty far from the highs. Specifically, I have my eye on the 21-month moving average near $470, followed by support from third quarter near $410.

On the upside, however, let’s see if shares can reclaim the $500 to $510 zone. Above puts the post-earnings high back in play near $567. Above that, and the gap-fill will be a discussion amongst traders.

Top Stock Trades for Tomorrow No. 3: CleanSpark (CLSK)

Top stock trades for CLSK
Click to Enlarge
Source: Chart courtesy of TrendSpider

Like The Trade Desk, CleanSpark (NASDAQ:CLSK) doesn’t look good either. However, unlike TTD stock, CleanSpark isn’t completely falling apart. At least not yet.

Shares are breaking below the $17.75 mark and the 200-day moving average. That’s a notch in the bear column, but there’s another area to focus on.

This area comes into play between $15 to $15.50 and offers both opportunity and risk. The opportunity is if it holds as support, while the risk is that it doesn’t. If CLSK stock loses $15, there’s not a lot of obvious support measures below.

However, within this zone includes the 50-week moving average, the prior high from September (and thus, the breakout level from December), and finally, downtrend support.

I want to see a bit more downside in this stock, giving investors a better buy-the-dip opportunity in this area.

Top 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 breaking to new 2021 lows, as growth stocks remain pressured. Investors were hoping for an earnings report that saved the day with this one, as it broke the key $10 mark last week.

That level, as well as the 10-day moving average are now key for bulls to reclaim. Below could keep the $6 to $6.50 area in play.

Above $10 and perhaps traders can call a bottom in WKHS stock — or at least give investors something to measure against on the downside. It also needs electric vehicle (EV) stocks to find their groove again.

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

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

Article printed from InvestorPlace Media, https://investorplace.com/2021/05/4-top-stock-trades-for-tuesday-dogecoin-ttd-clsk-wkhs/.

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