No need to overcomplicate the chart for DKNG. Obviously had a great run but now it is at an overbought level, and as you can see on the chart, every time it goes above RSI overbought level it goes down every single time!
Reasons to short:
1. Overbought needs to go down and find a support
2. Currently trading at resistance line (red) as long as there is no significant announcement or ER numbers to push the stock above that it's hard to break!
3. Current market condition, because of solid job market data, higher than expected inflation data the market expects the fed will raise the rate even higher.
The following support will be at 200 MA (blue line).
Reasons to short:
1. Overbought needs to go down and find a support
2. Currently trading at resistance line (red) as long as there is no significant announcement or ER numbers to push the stock above that it's hard to break!
3. Current market condition, because of solid job market data, higher than expected inflation data the market expects the fed will raise the rate even higher.
The following support will be at 200 MA (blue line).