4 Top Stock Trades for Tuesday: WKHS, DKNG, TSN, Berkshire Hathaway

top stock trades - 4 Top Stock Trades for Tuesday: WKHS, DKNG, TSN, Berkshire Hathaway

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)

Top stock trades for WKHS
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Source: Chart courtesy of TrendSpider

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)

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

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)

Top stock trades for TSN
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Source: Chart courtesy of TrendSpider

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)

Top stock trades for BRK
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Source: Chart courtesy of TrendSpider

Despite its massive size, Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) almost never comes up among trading discussions.

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.

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


Article printed from InvestorPlace Media, https://investorplace.com/2021/08/4-top-stock-trades-for-tuesday-wkhs-dkng-tsn-berkshire-hathaway/.

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