DKNG - REVERSAL : Movement Ending Volume + Stoch Divergence
After -36% almost non-stop in 17 days, we are back in the zone with potential supports (and reasons for the drop to stop). Here is how we could look at a reversal :
VOLUME : Since Oct 13th, went from very small volume to 3x volume size on the 20th (highest daily volume for DKNG, all-time), after which it dropped by half. This is a "movement-ending volume". The price got to a level of interest for buyers and they are stepping in; the sellers sold their positions and left the building.
BULLISH HIDDEN DIVERGENCE : Between the low (price action and Stoch) of early September, and the new Stoch low, the price is at a higher level. This is a bullish hidden divergence, hinting towards bullish move. Stoch is at close to 0.00 also, "oversold".
UPTREND : The uptrend started April 3rd 2020. It acted twice as support (mid-August and Early september). We are arriving at this trendline once more; which may again act as the support and send the stock upwards.
FIBONACCI 0.618 : "Commonly strong" Fibonacci Support, which is at 41.56$.
SUPPORT PIVOTS : 44.00$ (All Time High for a while, was the resistance to beat, once broken out of this zone it became parabolic), 41.00$ (highs pivots of end of August)
(Note that the Average True Range is at 3.70$, meaning we can expect 3.70$ of volatility pas a targeted support line)
VOLUME : Since Oct 13th, went from very small volume to 3x volume size on the 20th (highest daily volume for DKNG, all-time), after which it dropped by half. This is a "movement-ending volume". The price got to a level of interest for buyers and they are stepping in; the sellers sold their positions and left the building.
BULLISH HIDDEN DIVERGENCE : Between the low (price action and Stoch) of early September, and the new Stoch low, the price is at a higher level. This is a bullish hidden divergence, hinting towards bullish move. Stoch is at close to 0.00 also, "oversold".
UPTREND : The uptrend started April 3rd 2020. It acted twice as support (mid-August and Early september). We are arriving at this trendline once more; which may again act as the support and send the stock upwards.
FIBONACCI 0.618 : "Commonly strong" Fibonacci Support, which is at 41.56$.
SUPPORT PIVOTS : 44.00$ (All Time High for a while, was the resistance to beat, once broken out of this zone it became parabolic), 41.00$ (highs pivots of end of August)
(Note that the Average True Range is at 3.70$, meaning we can expect 3.70$ of volatility pas a targeted support line)