An update on my DKNG call Originally I expected DKNG to hit and pass 50$ in a bullish sweep. That was the case but much quicker than I anticipated, and its pullback in the trading days after would turn 3,000+ to a fully closed out profit of 1,300. It never hurt anybody to take profits and I had closed out a fraction the day before it dropped so I guess thats the plus here.
But where do we go from here?
Now that markets are closed let's take a look at price action. Today we see it has plunged to 46.56 down 4.88%. From the looks at the decline it was clearly overvalued but who's to shame when you were right and got lucky with the timing? I had a stop loss and it told me I was wrong. The next level of support looks to be near 42 as a minor and 40$ as a major structural support defining a long-term trend. You can look to buy at these levels as an entry and immediately follow perhaps 39.49 as a stop loss.
On the bears side is a fickle side for profit but nonetheless, before an initial drop there may be bulls near 44 and 45 to push it into its trend that it follows in a longer term ascending triangle. The overall thesis a bear would take is a put for 40$ near a 45$ if the price action supports it(I say this because option price will be determined by gamma, which predicts price trend)
