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Bullish Triangle in DraftKings as Football Resumes

Long
NASDAQ:DKNG   DRAFTKINGS INC
Sports-betting pure-play DraftKings had a monster rally between March and June with a surge of almost 300 percent. It then entered a period of consolidation, which has recently morphed into an ascending triangle .

DKNG based out near $27.50 in mid-July, followed by a higher low above $30 exactly one month ago. Prices have mostly hugged the 50-day simple moving average ( SMA ) in the process -- not a bad sign for the bulls.

The $40 area has been resistance in the last two weeks, but yesterday DKNG closed above it. (It was also the highest close since June 19.)

This creates the potential for a sneaking breakout, especially when you consider another chart: the CDC’s daily coronavirus case count. It showed just 23,301 new infections on September 8 – the lowest level since June 17.

In conclusion, sports betting has the potential to become one of the big growth stories in the market. DKNG’s interesting price action is just in time for the Texans / Chiefs game tonight, and a busy schedule of football games this weekend.

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