Game on for DraftKings?
On bearish days like we’ve had lately, it can be useful to look for stocks lurking near highs because they often break out when calm returns. DraftKings seems to fit that bill.
First, consider how the sports-betting stock formed a large bullish ascending triangle between early October and late February. Notice how it began the current month with a breakout through the top of the triangle. It’s now trying to turn old resistance into new support near the old peak.
Second, Bollinger Bandwidth remained at the narrower end of its long-term range as price squeezed toward the top of the triangle. Will it start expanding if the shares exit the triangle?
Finally, DKNG had a false breakdown below $53 on February 23. (This was actually the low for the entire month.) It quickly rebounded from the drop, creating a bullish outside week. The pullback also served as a test of old resistance around $55 from mid-December and mid-January.
DKNG has had a flurry of positive headlines lately: strong revenue, strong guidance, snagging Carl Ripkin Jr. before baseball season, plus the exclusive UFC deal. It can now potentially benefit from the spread of sports betting as the U.S. economy reopens.
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First, consider how the sports-betting stock formed a large bullish ascending triangle between early October and late February. Notice how it began the current month with a breakout through the top of the triangle. It’s now trying to turn old resistance into new support near the old peak.
Second, Bollinger Bandwidth remained at the narrower end of its long-term range as price squeezed toward the top of the triangle. Will it start expanding if the shares exit the triangle?
Finally, DKNG had a false breakdown below $53 on February 23. (This was actually the low for the entire month.) It quickly rebounded from the drop, creating a bullish outside week. The pullback also served as a test of old resistance around $55 from mid-December and mid-January.
DKNG has had a flurry of positive headlines lately: strong revenue, strong guidance, snagging Carl Ripkin Jr. before baseball season, plus the exclusive UFC deal. It can now potentially benefit from the spread of sports betting as the U.S. economy reopens.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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