DKNG LONG IDEA
Watching DKNG for a possible trend reversal once a breakthrough of 0.236 fib occurs at my price level of just over $48. A strong breakthrough would indicate a move out of a three-month downtrend which aligns with my indicators. MACD is curling upwards, and RSI is moving out of oversold territory lining up for a potential upwards move. It also held the lower trendline with significant strength on the 19th. Significant resistance levels include $50 and the 0.382 fib level of $53 at which I will likely take some profits.
My fundamental thoughts are bullish with the recent pullback being healthy for a move up to all time highs which will be 4400 for SPX and over 15000 for the Nasdaq. Covid delta fears have also somewhat subsided and seeing similar with inflation concerns as the US 10yr sinks to relative lows. I believe periods of anticipation of sustained reflation or tapering are likely to remain brief which will allow growth stocks to perform in the meantime. A strong combination of fundamentals and technicals makes this a solid play in my opinion.
My fundamental thoughts are bullish with the recent pullback being healthy for a move up to all time highs which will be 4400 for SPX and over 15000 for the Nasdaq. Covid delta fears have also somewhat subsided and seeing similar with inflation concerns as the US 10yr sinks to relative lows. I believe periods of anticipation of sustained reflation or tapering are likely to remain brief which will allow growth stocks to perform in the meantime. A strong combination of fundamentals and technicals makes this a solid play in my opinion.
Note
This has now reached the 0.618 fib line and I will therefore close 3/4 of the position and let the remaining run for a possible test of $67.
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