Draft Kings looks to be breaking down under the neckline of a long term head and shoulders pattern. This is extremely bearish and suggests a target in the $15-$20 range based on the height of the head from the neckline. Possible retest of the neckline before the crash. If the neckline resistance holds, look out below. If DKNG can break through the neckline with confidence, the pattern and trade setup could be invalidated. I personally prefer to wait for the neckline test before entering a position.
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More conservative price target is $25, reasoning in a reply comment below.
Good call. Hard to accept when in a trade and you miss the long range outlook. I admit, i missed it but thats the game. win some, lose some.
diamondhands08
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This is what I've been watching. How come no one but this guys is watching the long term trend?
EephusTrades
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Can I ask, how you are determining your range based on the height and neckline?
ImportantImports
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@cmo187265, measure the distance from the head to the neckline. In this case it is approximately $34 (neckline is at $39 when the peak of the head is at $73, so the difference is $34). Take that $34 and subtract it from the neckline after the breakdown and retest to get the $15 target.
A more conservative measurement would be to use % retracements instead of $ amounts. 46% retracement from the head to neckline, take that and subtract from the retest to get a $25 price target.