Can DraftKings Overcome Key Technical Levels?Primary Chart : DraftKings Inc. Weekly Price Chart with Fibonacci Levels and Downward Trendline from All-Time Highs
DraftKings Inc., an innovative sports-betting company, has been one of the hottest stocks of this week after it beat earnings expectations and raised revenue guidance. Many are likely chasing the stock's price here without any discipline whatsoever, being driven by fear of missing out and the possibility of untold gains from a former darling of growth investors.
The magenta trendline on the primary chart, which is logarithmically scaled by the way, shows that the downtrend remains intact despite today's powerful rally. This downward trendline could be broken, by the way, if momentum is sustained by bullish seasonality and tailwinds into year end in a pre-election year. But a shorter-term down trendline has been decisively snapped with today's upside push, and this suggests near-term strength for DKNG.
Supplementary Chart A
And DKNG gapped above its key 50-day SMA today as well.
Supplementary Chart B
But this post does not recommend shorting or longing this stock; instead, its purpose is to analyze NASDAQ:DKNG and consider its current position in light of a severe bear market in 2021-2022 and a euphoric bull-market run in 2020-2021. With discipline, some trading profits might be made long or short given this stock's inherent volatility—the stock rose about 15% today and about 25% this week alone. But without risk management, this stock could easily obliterate anyone attempting to gather quick profits on a short-term to intermediate-term time frame.
The stock is extended here after it gapped above key moving averages. It also has reached critical resistance at the .618 Fibonacci retracement after breaking above the 50% retracement on October 31, 2023. The .618 Fibonacci retracement lies at $34.25, a few cents above the high of the week and the day today. A bit of consolidation of today's move may provide traders with a bullish view into the new year (a time frame of about 2 months) a reason to buy the dip.
But caution is warranted into 2024 and 2025—can technological innovation and earnings surprises be enough to sustain this stock? Your comments on this particular question are welcome. There may be room for some debate as macro headwinds cannot prevent rallies like the one seen in equity indices like SP:SPX and some growth stocks. But there is a decent likelihood that macro headwinds may work against DKNG as long as interest rates remain high and inflation does not disappear. The Federal Reserves funds rate is now at 5.25% to 5.50%, a 22-year high. And quick look at the TradingView's Financial overview shows that DKNG has not had positive net income yet. And its financial history is not that long yet: It was founded in 2011, and it has only been public since 2020. So despite the major earnings beat and positive guidance today, DKNG still lost $0.61 per share. Unprofitable growth stocks do not perform as well in high-rate environments.
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Author's Comment: Thank you for reviewing this post and considering its charts and analysis. The author welcomes comments, discussion and debate (respectfully presented) in the comment section. Shared charts are especially helpful to support any opposing or alternative view. This article is intended to present an unbiased, technical view of the security or tradable risk asset discussed.
Please note further that this technical-analysis viewpoint is short-term in nature. This is not a trade recommendation but a technical-analysis overview and commentary with levels to watch for the near term. This technical-analysis viewpoint could change at a moment's notice should price move beyond a level of invalidation. Further, proper risk-management techniques are vital to trading success. And countertrend or mean-reversion trading, e.g., trading a rally in a bear market, is lower probability and is tricky and challenging even for the most experienced traders.
DISCLAIMER: This post contains commentary published solely for educational and informational purposes. This post's content (and any content available through links in this post) and its views do not constitute financial advice or an investment or trading recommendation, and they do not account for readers' personal financial circumstances, or their investing or trading objectives, time frame, and risk tolerance. Readers should perform their own due diligence, and consult a qualified financial adviser or other investment / financial professional before entering any trade, investment or other transaction.
Sportsbetting
DraftKings can it go Higher? $DKNGWith another year of increased Revenues DraftKings is poised to see higher gains. " In August, DraftKings took the U.S. online gambling lead, according to a new study by prominent research entity Eilers & Krejcik Gaming, capturing 31% of overall gross gaming revenue compared to FanDuel’s 30%. " - frontofficesports.com
Is DKNG a bettable buy?As shown on the daily chart DKNG has been on a clean rise this entire year now up 100% over
the first six months. An earnings report is due in about three weeks. Sports betting
may have some seasonability and most of all collegiate and professional sports are in the
off season at this time. No matter, the chart shows a steady rise since the last earnings
( small) beat in an ascending channel between two and three standard deviations above
the mean VWAP anchored one year ago. The MTF RSI indicator of Chris Moody shows both
RSIs at about 70 and so not overbought. Trading volumes are steady and consistent. The
relative volatility indicator shows some increases in the past 9-10 trading days. Overall,
I believe that DKNG is suitable for a long swing trade which I will close just before
earnings.
DKNGPossible classic resistance turned to support, rounding bottom pattern, look left Vol Profile Vacuum could trigger a move to 45
DKNG Demand Zone + StrengthCompany : DraftKings has been showing Extreme Relative Strength after a nearly 100% move from its June Low to Recent Bear Market Highs.
This Relative Strength is not from nowhere and definitely, can be attached to DraftKings leadership in the Sports Betting & Gambling industry. DraftKings has opened up huge money-generating partnerships with NFL, and other large organizations. These agreements and contracts only have pushed DraftKings Higher.
While the Market has continued to drift lower these past weeks, DraftKings has been taking a necessary hit from its large run-up. DKNG is entering a Major Demand Zone Dating back to the IPO days. Technicals are showing a very large demand zone from the near $15 level towards the $10 level. With this heavy support area, we may see heavy consolidation for a time being, and a Strong appearance of Buyers.
This is a strong thing to note out, as this could be a strong Long-Term Aquiring location for many Investors to pick up in this Bear-Market.
$DKNG could popEvery time the upper AND lower bands in orange of the Bollinger pass within the Keltner Channel, there is a significant move. The direction is always unknown, but it's an excellent indicator of when a stock is coiled for a big move.
The last few upper and lower band breaches resulted in big downwards moves. This most recent cross of both bands of the Bollinger into the Keltner Channel signifies another big move, but I think this time, the direction is up. It's already been slaughtered and I highly doubt it can get beat up more than it's already been beaten up.
Side note: There was lots of unusual activity in the 15C expiring this Friday for $DKNG. Large purchase implying a big move by the end of the week.
They also have the Stanley Cup and NBA finals going on right now so the bets should be flowing making for a could quarter (I believe they report in August).
DRAFTKINGS - Trends & Price targetsHere's my chart for draftkings, when I go in closer, I see potential downside in the next few days, but there is a lot of potential upside in this stock in the long term with support coming from the bigger charts.
$DKNG, Draftkings at the all time .886Draftkings is currently at the all time .886 retrace and forming a double bottom.
Indicators in the 3d chart also look very bullish imho
Stay safe in this crazy times !
$DKNG | WEEKLY WATCHLIST 1/10$DKNG 1D
Bounced perfectly off the 78.6% from all-time range.
If > $23.5, possible to see 100% upside at the minimum...
$DKNG long V recoverySorry Jim Chanos, you're just dead wrong about this one. You might be right about WYNN tho.
Go long DKNG. Looking very attractive right here and appears to be forming another V recovery. The prior V recovery brought DKNG to its ATH of $74.38. This could send it to those levels for an initial test and then hopefully an eventual breakthrough.
(They usually don't break through prior resistance on the first try)
Draftkings launch into the NFT space partnered with the NFL right before the Superbowl should make for a very fruitful quarter.
$PENN Weekly swing ideaPenn on the weekly pretty bullish set up from a technical perspective for a swing trade going into EOY.
Nice base forming with a weekly close at the 21EMA, however strong resistance zone $84-86 .
Want to see a break of this, followed by possible retest similar to DEC 20 price action before continuing to the upside.
Failed break of resistance zone invalidates trade and look for a move back down to $70
Momo has my bias to the upside given overall market stays in line.
$GNOG vs $RSI year to date comparison. $GNOG Golden Nugget Online Gaming and $RSI Ruth Street Interactive have traded roughly in the same range year to date up until $DKNG DraftKings announced its acquisition of GNOG on August 9th. There is currently about a 20% difference between the two stocks. Rumors have circulated of a possible acquisition of RSI by Flutter Entertainment $PDYPF. Rumors aside $RSI has plenty of room to the upside, has gained attention recently, and the online gambling sector is positioned well considering the continued push towards a digital world.
Double Bottom Confirmed on $DKNGI'm remaining bullish here for as long as the 13-day MA keeps climbing above the 21-day. Solid structure forming with a clear break from its previous neckline/resistance.
"According to an article in the European Business Review, domestic sports betting revenue in the U.S. is projected to be valued at $7 billion by 2025… and it continued saying that, according to a report by Technavio, the global sports betting market size is expected to grow by $144.44 billion between 2020-2025."
DraftKings is in a very strategic position to remain a key leader in this space as more and more states continue to legalize sports betting.
DraftKings Is on the MoveSports-betting stock DraftKings doubled between last November and March. Now after a long pullback and consolidation, prices are trying to climb again.
This chart shows how DKNG made a small jump following a strong quarterly report and guidance hike on August 6. It initially hit resistance at the 200-day simple moving average (SMA), but proceeded to break out about two weeks later.
Second, notice the succession of higher lows since July 2020. This shows ongoing acceptance of continuously richer prices. The weekly chart also highlights the fast rebounds after the drops, revealing potentially eager buyers:
Third, the 50-day SMA has turned higher and is approaching the 200-day SMA: a looming “golden cross.” That could suggest DKNG’s longer-term trend is turning bullish again.
Finally, the recent jump may be followed by a deeper pullback before the buyers jump in again. Traders may want to watch the mid-August high around $54.70 or the June high around $56 as important levels.
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$PENN HTF ACB/Daily IBO LongWeekly Swing Watchlist
Anyone else missing the US Equity market today???
#1 Secondary Watch
$PENN HTF ACB/Daily IBO Long
Monthly - Bullish engulfing/0.5 fib retrace
Weekly - Support/Bullish engulfing/50 ema
Daily - Descending triangle break out/Emas/MACD/Decel
Will become G2G pending further pullback on the daily for an entry. Will eval LTF when closer to entry.
RR - 5.6 (Standard ACB target)
Management - Long term
Additionally on Watch:
10 stocks on this weeks development needed list
21 stocks on monthly watchlist (mostly in Tech & Health Care sectors)
Live Trades:
$TLRY - Full Risk
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$AMC - Zero Risk
SBET Technical AnalysisSBET is a low float (<2m) sports betting company. With college and NFL football right around the corner, this stock is a steal at these prices. There was a solid rally at the end of the day today and will be looking for a big push come next week. There is clear resistance at 7.00 and could retrace and hopefully find support at the fib line below. Low volume= likely rejection. After a 7.00 break we can look to aim much higher.
FUBO TV a super enthusiastic signal... will be realized ?My marketMiracle advisor returned a purchase signal on $FUBO FUBOTV at a price of 21.43 USD with a target of 134.21 USD or a potential profit of 526 %.. To be honest, I think it is a bit too much, but we are well aware of the volatility characteristics of low-cap securities.
Now, wanting to see the situation on the graph I do not feel like tracing a possible path towards the target that the advisor has given, I think a goal very far and difficult to achieve.
But I have identified a possible path that can lead to the doubling of the title.
I speak of doubling because looking for information on the fundamentals of FUBO TV I saw that in recent results the number of subscribers to their TV streaming service has doubled, so a doubling of the value of the title is certainly reasonable.
This idea is based on a signal generated by the advisor Marketmiracle, down on this page you will find the link to the page of signals of the advisor that you can see for free without any cost or registration
DKNG Increasing their advertising budget to $44Million Obviously this industry is trying to get a running start on claiming a vacant spot since the pandemic. If the industry as a whole is multiplying their advertising budgets by 15X its not out of line to think that their overall profits will increase as well. Is double industry earnings year over year out of the question?
by iCantw84it
05.19.2021
What's next for DKNG? Part 1What's next for DKNG? I'll be providing two other posts, please make sure you check those out as well after reading this. There's a lot of juice behind this stock right now.
As you can see from the chart, DKNG had a clear breakthrough below the 200 day SMA. This line of support had massive volume (VPVR) at the 51 level, the 200 day SMA line at 51, as well as massive psychological support at the 50. All broken through yesterday. Right now, the play is to find the bottom, but where is it? Are we too soon?
For the retail bros, it looks like all is lost, and this shit is going to zero. But... check out RSI and my follow up post.
DKNG reclaim 60?DKNG 4HR Chart-
DKNG had a nice falling wedge breakout with decent volume and a strong close above 58. With earnings approaching as a catalyst, we could see more upside. Would like to see price form higher lows with this current break of the downtrend. A break and hold above 60.50-61 level and we could see nice rally to February highs of 64.70-65. Keep gambling laws, other gambling stocks' news (sympathy plays), etc. on watch as potential catalysts to help boost the Donkey Kong to the moon. Recent news with mobile sports betting laws being passed in states has resulted in pump and dump situation, so keep that in mind as well as current market sentiment.
PENN Long And StrongI think PENN is oversold. The country is reopening and sports will be back in a BIG way. And do you know what's bigger than sports? SPORTS BETTING! PENN Nationals merger with Barstool Sports, a media company with hardcore sports fans was an end game move! They will be the biggest and lead the way for other sport betting companies. Sports betting will be legal in all 50 states in the future, the tax incentives are too massive to pass up. Barstool Sports book is only in 2 states so far, and already setting records. It's up only from here. Long PENN and prosper my friends! Cheers. I think PENN will be trading around $185-200 by 2022.
DKNG back to 70+?DKNG 1HR CHART...
After a strong sell off from reaching ATH, we seen some bullish momentum in the past 2 weeks with a strong close on Thursday. March Madness championship is Monday April 5th, so a potential catalyst to help this momentum continue. Expecting to see some bullish price action early this week and sell the news with sports activity decreasing. Possible catalysts to keep a look out for... gambling laws, partnerships, app features, etc. A safe entry would be on the break of 65 and a hold, to ride it back up and retest ATH. A Break Under 61 I would consider looking for a short opportunity to mid 50s depending on the overall market sentiment.
$PENN long$PENN sitting at the bottom of its range giving us entry for continuation on its current uptrend. We like entry here at golden pocket aiming for previous ATH.
