0ABA trade ideas
DKNG is it time to ride this train back to ATH?After a nice rally leading up to the Super Bowl it looks like this beast has settled down, not much sports betting activity besides NBA and March Madness which would be a big one. After that I feel the stock price will see some flat movement and run based on states passing betting laws. Also keep in mind we have ER approaching soon so that will cause a possible run up. DKNG is currently in a downtrend channel and is looking primed to break out soon. We also have a gap down so keep in mind this could potentially go for that gap fill at 55. The Safest entry would be to wait for the breakout of the resistance line with significant volume for a confirmed sign of reversal. Now depending on market sentiment, we could see more room to the downside, where you could get a nice dip entry (buy zone located in chart) to long.
Key Levels
Support: $58.86, $56.86, $55.14
Resistance: $60, $61.11, $62.46, $64.21
Ways to Play this:
1. Load Up Shares
2. Enter on breakout of downtrend resistance with month out calls
3. Buy on the dip if this goes for a gap fill
4. 2022 leaps
Option Ideas: low to high risk contracts (High OI and VOl, very liquid contracts so you can get filled easily)
60C 3/19 4.30
65C 3/19 2.57
60C 2/26 2.62
65C 2/26 1.05
60C 2/19 .57 (lotto)
62C 2/19 .21 (lotto)
DKNG - Wait for oversold and go for long callIt's beautiful uptrend trajectory, ascending triangle. Could wait for it's touch the Fib and go for a long call. Target: $80
BUY DKNG 2.16.2021Possible Dip buy on DKNG if momentum can shift right here. Watch for a defined trend this week.
$DKNGTight consolidation. This will be a monstor breakout if it breaks the pennant to the upside !!! Keep this on WL
Cup and HandleDKNG has broken long entry level then pulled back, experiencing a throwback.
Support can be found at mid cup and handle low. Some use the last pivot low.
4 dojis and 1 spinning top on the handle. There is another doji beneath the handle and a couple of spinning tops. Doji candlesticks and spinning tops are abundant in the market and can be as plentiful as weeds in a garden. Sometimes best to look at several candles in a row verses focusing on one candle to get an idea of market sentiment. A true doji has no body to the candle and is just a straight line where close and open are equal. (+) There are numerous types of dojis, gravestone, dragonfly, long legged dojis etc. I would say the first 2 are true dojis and the second 2 are spinning tops because they have a small body. Spinning tops can represent indecision. The 2 spinning tops are followed by a fairly strong red candle that "engulf" the bodies of the 2 preceding candles, then a fairly strong green candle that opens and closes within the body of the preceding candle which some would call a bullish Harami. There are some fantastic books on candles and a lot of information online as well.
Candle shadows (or wicks fr top shadows and tails for bottom shadows) can be important areas of support and resistance. If you see 3 tall wicks on candles very close together that reach the same (or close to the same) level, there is a good chance there is resistance there and price is struggling to break through it. Same with 2 or 3 tails that end at close to the same level can indicate support is lurking at that area. S and R levels were made to be broken or the market would be ranging all the time. There are some levels that are stronger than others. IE..an IPO, a new stock has not had a chance to form these levels and can be very difficult to trade. I discovered this the hard way )O:
Bullish candle patterns work best in an uptrend or at the bottom of a downtrend serving as a reversal signal and bearish candlestick formations often work best in a downtrend or at the top of an uptrend serving as a possible term reversal signal. Reversal does not usually mean a total trend change and could only be a reversal up or down for a few days. In other words, candles do have meaning, but the trend they appear in and the total picture of price is important.
Not a recommendation
Update on DKNG, tested previous high, good newsDKNG has contended with its previous high which bodes well for future performance. It's a very low probability event that any stock, commodity, or other financial assets break through a previous resistance without first contending with it.
DKNG has carried on trend, and so far Cathie Woods hasn't picked a bad egg. Expect some legs on this trade, especially after earnings when the rest of the world realizes how attractive the prospects for this business and stock are.
Short Gains projected before EarningsExpecting to hit $63 once more before falling back to $60 before upcoming Earnings.
This is one of my first TA (And I hope I'm pretty close for the sake of this call option!)
If you have anything that you'd like to add, please do. Thanks. Happy Gains!
DKNG - Cup & Handle - ARK buys - New Highs ComingDKNG has formed a nice cup and handle pattern
Ark Invest has bought a significant amount of shares over the last few days in multiple funds (~1m + shares)
Expecting handle formation to breakout to new highs and possibly test 75
$DKNG to retrace back to round 56 before rallying upI see $DKNG retracing to 56 by 18 Feb, after which it will rally upwards ahead of the 25 Feb earnings report. I'll be buying some LEAP calls around bout that time to catch it lower and doing some PCCW (poor man's covered call) in the weeks after that.
DKNG daily viewi havent 'published an idea' in quite some time and figured would throw something together right quick.
i am quite bullish on DKNG and taking look at daily chart on this pullback last few days, i am seeing couple of opportunities to add some shares potentially.
Currently today, it has dropped below its 8d ema intraday and ideally would like to see a close above that level.
We also have recent uptrend support around mid 58s.
Next would be feb 2 low test of 58.39 (that was gap up on ARK invest purchases)
If that should fail, horizontal support should be found in the 56-57 region.
DKNGDKNG with what looks to me as a VCP. I got a pretty good entry on this one. Letting it ride until the trend changes. Will add if we break higher.
break out playDraft Kings broke out after Ark Next Generation Internet ETF bought $34million worth of Draft Kings stock.
buy it and hold! ARK bought this a month before the earning, that tells you something!
During Super Bowl season, Draft Kings is gonna win big with its focus on sports bettors.
DKNG LongAnother one I have been following for some gains. DKNG!
This is a small pattern completing to a bigger macro pattern. Pretty easy to follow.
CHEERS!
Top of channel acting as support nowCathie from ARK has added DKNG into two of her funds now, ARKW on 2/1 and ARKF 2/8.
This created a nice pop in movement outside of the channel. Now the top of the channel is acting as support leading into ER at the end of the month.
DKNG - Breakout target 80Breakout target 80
———————————————————
How to read my charts?
- Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines.
- The yellow horizontal lines shows support and resistance areas.
- Fib lines also shows support and resistance areas.
- The dotted white lines shows price projection for breakout or breakdown target.
DKNG bounce downwards off resistance DKNG is level with it's ATH with a divergence emerging.
The exact situation happened at the previous ATH which i've circled.
Confirmation and fundamental analysis is still needed however this could descend down to support.
DKNG hitting big resistanceDKNG closed the week with a doji . Will be watching to see if it retraces like the last ATH breach. I would like it to fail to break Friday's high and make a new low for an opportunity to go short.
DKNG long term accumulation periodSo everybody seems to be buying the Draft Kings hype lately. I've been told there's a Cup and Handle forming up, good deals ahead, and so on and so forth.
From the way I see it this is a time with too much uncertainty in the long term. And I think we can see that reflected on the stock price.
- First we can see two trends, in yellow, forming a symmetrical triangle that broke downwards on December 28th.
- Price is directly testing that 50 MA (red line). Moving averages act as a good form of dynamic areas of support and resistance. Just by looking at previous price history we can see that every time bulls failed to hold that level at the 50 MA, prices fell down dramatically for a considerable period, and conversely when bears didn't hold that spot, bulls started rallying.
- We have several indicators already, or about to be, giving bearish signals (MACD, RSI, Stochastic). On my screen, we can see the price falling and currently trading inside the Ichimoku cloud.
My take is that if we lose this level of weekly support, which coincides with the 50 MA support, price is gonna keep dropping steadily for a while. We need just another failed retest of that descending trend-line acting as resistance (yellow) to confirm this theory - which is also forming a descending triangle.
In cyan blue arrows the path I think price is gonna follow. I believe that if we do form a descending triangle it's gonna signal a price continuation - best time to buy is gonna be when price squeezes near the end of the formation.
Could be wrong. Maybe the hype is real. Maybe that decline of volume over time is signaling a local bottom on that weekly support. We'll see.
Best of luck, lads.
