First and most important is the 50-day ( ). DKNG came within $0.03 of that line on Monday and has been bouncing since.
Next, the current 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 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.