Draftkings Long DKNG pushed up to as high as 65 after the restart of sports, but with the recent public offering of shares, DKNG had a huge drop in pricing. I believe that DKNG is a great company to hold for the future, and this presented a potential great buying opportunity.
DKNG helped the trend line dating back to April. Though this is not too long of a historical trend, in my opinion this is still significant given that DKNG is still relatively new. We saw the reversal on November 2nd off that trend line, which gives me suspicion that DKNG can continue climbing back to the 50’s. We also have good momentum leading up on the MACD.
I’m looking to add more DKNG if we can reach 41.79 or 39.70 (possible downside) to average down on my shares. There is a chance we see a bit more downside before DKNG is primed.
At the close of Friday’s session (11/13), the price action fell in the volume shelf where the majority of this stock has traded in the last year. I’m looking at 45.50 and 47.42 as possible levels of resistance. There is a good chance DKNG will run up to 55’s if it can break these levels. The main catalyst I’m looking at is the restart of the NBA in December and the days leading up to the NFL playoffs. This is a good opportunity as a long term hold based on the potential of the next earnings season.
