TradeStation
Long

DraftKings Coming Off the 50-day SMA

NASDAQ:DKNG   DRAFTKINGS INC
Sports-betting disruptor DraftKings was one of the most explosive stocks of the second quarter, almost quadrupling at its high-water mark in early June. It then stalled for a secondary stock offering (40 million shares at $40 each) and knifed lower into some interesting support areas.

First and most important is the 50-day simple moving average ( SMA ). DKNG came within $0.03 of that line on Monday and has been bouncing since.

Next, the current support area is near the post-earnings consolidation range from mid-May 15. Some traders might like to see a deeper test under $30, however this doesn’t always happen with a stock moving as fast as DKNG .

Finally, the current pullback completes an ABC correction pattern.

DKNG’s fundamental story is also interesting as barriers to online betting collapse. There has been anxiety with Penn National Gaming planning to release the Barstool app. But usually when an industry is growing like this, competition isn’t a big threat. If anything, it can draw more investors to the story.

Comments

Will be in the 100's when sports start back up 300585847648945%
+1 Reply
Elias369 Justinstocks
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out