Well, you can tell that it’s summer trading time, with the abysmally slow and low-volume trading sessions here. As if Friday’s unimpressive session wasn’t enough (on a labor report day, no less), then Monday’s session was here to remind us of the dog days of summer. With all of that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Workhorse (WKHS)
Workhorse (NASDAQ:WKHS) is up slightly on the day, but it’s better than when it was down more than 6.5% at its session lows — and that’s after a 4.5% slide on Friday.
In any regard, let’s keep a close eye on the $10.60 area. This area was support last month that gave way and turned to resistance this month. If WKHS stock can reclaim it and the 10-day moving average, perhaps it can work up the strength to reclaim the 21-day moving average.
That could open up the $12 to $12.50 area, followed by the 50-day moving average.
However, below its post-earnings low, and Workhorse may be heading for sub-$8 levels.
Top Stock Trades for Tomorrow No. 2: DraftKings (DKNG)
DraftKings (NASDAQ:DKNG) has been trending over the last few days. On Friday before the open, it reported earnings.
The stock jumped higher on the better-than-expected results, but quickly ran into an obstacle. Specifically, shares are struggling with the 21-week and 200-day moving averages, along with the July high at $53.39.
As if earnings weren’t enough, the company was in the news again on Monday on news of its all-stock acquisition of Golden Nugget Online Gaming (NASDAQ:GNOG).
We now have an inside day (with Monday’s range completely contained within Friday’s range), as DraftKings stock makes another charge at recent resistance. If we can get an inside-and-up rotation, look for a push above Friday’s high at $53.79.
That would put DKNG stock over the post-earnings high as well as all of those resistance marks outlined above. That would unlock $56, followed by the $60 to $61 area.
If we get an inside-and-down rotation, though, look for the 10-day and 50-day moving averages to hold as support.
Top Stock Trades for Tomorrow No. 3: Tyson Foods (TSN)
Tyson Foods (NYSE:TSN) also reported earnings on Monday before the open, which helped propel the stock higher by almost 9%.
Shares gapped over the 50-day moving average, but held this measure on the dip before powering higher on the day. In the process, Tyson Foods also reclaim its 21-week moving average, as it now rests above all of its major daily and weekly moving averages.
I would like to see that observation remain true going forward too, leaving bulls in control.
However, shares are struggling with the 61.8% retracement. We’ll need to see the stock clear that mark in order to return to the $80 to $82 area. Above that, and perhaps the 161.8% extension is on the table near $89.
However, below $75, and the post-earnings low remains vulnerable. Below the 50-day, and TSN stock could go on to fill its earnings gap.
Top Trades for Tomorrow No. 4: Berkshire Hathaway (BRK.A, BRK.B)
The $281 level was acting as stiff resistance for weeks, while BRK.B stock was also struggling with the 50-day moving average. Now bursting higher, investors should have their eye on the $292.50 area.
Above that puts $300 in play.
On the downside, though, look for the 10-day and 50-day moving averages to act as support — along with the $281 level. A break of $277 could put $270 in play.
On the date of publication, Bret Kenwell held a long position in DKNG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.