Stocks began Thursday under pressure, although did find their footing in the morning part of the session. Investors are trying to gauge how to proceed into the summer, a stretch that can be difficult as volume tends to dry up. Before that, though, let’s look at some top stock trades.
Top Stock Trades for Tomorrow No. 1: Workhorse (WKHS)
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We’re still seeing heavy volatility in short-squeeze candidates and Workhorse (NASDAQ:WKHS) is just another example. Shares ended the day up 28%, but were up almost 60% at one point in the session.
As a result, the stock has a pretty wide range for the day, which makes gauging the risk a bit more difficult. Another interesting observation is just how small a 60% rally looks on this chart.
In any regard, keep an eye on today’s high at $18.33. Above that, and perhaps we can see a further squeeze up to the $19.50 to $20 area. Near the latter, the 200-day moving average also comes into play.
If WKHS stock really goes on a freakish run, there’s a gap-fill to keep an eye on all the way up at $31.
On the downside, however, see that the stock holds the 10-week and 50-day moving averages as support. If it can’t, $10 or lower could be back in play.
Top Stock Trades for Tomorrow No. 2: Docusign (DOCU)
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Docusign (NASDAQ:DOCU) enjoyed an explosive rally due to increased adaption during the pandemic. However, the stock has been consolidating for almost a year now.
In early May, the stock flirted with a breakdown below range support near $185, but ultimately ended up bouncing.
While it was good to see this play out as a “look below and fail” setup, it wasn’t that encouraging to see the stock so harshly rejected by its short-term moving averages.
Due up after the close, Docusign will report earnings. On a bullish reaction, I’d love to see a rally over the 50-day moving average and downtrend resistance. That will put the 200-day moving average in play. That’s followed by resistance between $230 and $235.
On a bearish reaction, $185 is the focus. Below puts the May low in play at $179.49. We don’t want to see a close below that mark.
Top Stock Trades for Tomorrow No. 3: Crowdstrike (CRWD)
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Crowdstrike (NASDAQ:CRWD) shares have an interesting setup. Like Docusign, the company is due to report earnings after Thursday’s close.
After a strong rally off range support near $175 — in which the stock reclaimed the 21-day and 50-day moving averages — Crowdstrike shares are dipping to the 10-day moving average.
Without a big event like earnings on deck, this would be a buying opportunity in my opinion. However, many traders prefer to avoid the “gamble” associated with earnings (as do I).
From here, I’m looking for a move over $225 resistance after the print. Above puts the current high in play near $251.
On a dip, let’s see if the 50-day moving average acts as support. If it doesn’t, the 200-day moving average and range support near $175 could be back on the table.
Top Trades for Tomorrow No. 4: Tilray (TLRY)
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Tilray (NASDAQ:TLRY) exploded higher in February, topping out with the rest of its group and embarking on a painful multi-month downtrend.
Perhaps surprisingly, the 200-day moving average held as perfect support and in May, shares climbed through downtrend resistance (blue line). With the recent rally, shares also reclaimed the 50-day moving average.
With Tuesday’s pop, Tilray almost rallied to $22.95, which is the 2020 pre-coronavirus high and a level that proved significant in 2021. On the fade, see if the 10-day and 50-day moving averages hold as support. If they do, perhaps TLRY stock can test up into $23.
Above $23, and $30 is possible.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
