Are We Seeing A DraftKings Breakout?
Gary S. Morrow | Dec 09, 2020 02:25PM ET
Is DraftKings Inc (NASDAQ:DKNG) poised for a fresh rally leg? The stock was piercing a key overhead trendline this morning as it continues to lift off solid support near the $35.00 area (held for three straight monthly lows). The steep slide off the October peak (ATH) held this key zone. DKNG has been consolidating since then as it remained inside the October range. This week, another layer of support has come into play, the initial 2020 high set back in early June. We believe the stock is setting up well for a run back up to the highs.
Numbers, just numbers: At the June peak, DKNG was up over 300%. At the October peak (ATH), the stock had gained just over 480% from the March/Jan lows.
A key upside hurdle is the $54.00 area. Once the late November high is taken out, DKNG will have a fairly clear path to new highs.
On the downside, a close back below $45.00 would violate this week’s low (December low), indicating more consolidation would be needed before a fresh rally leg can begin.
Note: We are long DKNG in our Tactical Opportunity Portfolio, which at yesterday’s close was up 95% this year.
You can read Gary S. Morrow's original post here .
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.