$DKNG good volume and bounce from BTFD levelsVery very long this name..
Big consolidation --> Fake dump --> bounce from BTFD levels -- whats not to like here ?
0ABA trade ideas
RSI oversold ! buy now bounced off a big support area as expected, take entry here with stop loss at 44, target 54 before looking for another dip entry.. great chart and company ! goodluck to longs :)
DKNG Possible Long SetupDKNG Possible Long Setup
Lockup period drops.
Short sellers at roughly 7%
Still up 150% since ipo merger
Do your own DD
Entry Buyzone= 43 - 40
Cost Average Down Zone = 32 - 35
1st Sell target = .618fib @53
2nd Sell target = .786fib@57.92
3rd target = ATH
HODL targey = 1.618fib @82.29
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This content is for informational and educational purposes only. This is not in any way, shape or form financial or trading advice.
Good luck, happy trading and stay chill,
2degreez
Daily Chart Double Bottom incoming on $DKNG?$DKNG had a good rally after selling off from its highs of $64 and bounced very nicely off of $35. It has recently gotten rejected at $55 creating a lower high and a potential neckline for a double bottom. If the opportunity comes to get shares or calls at $35, I will definitely be taking it. It is now trading below the 20 and 50 ema headed towards the 200 ema, which is currently at $39 another potentially area for the next bounce to occur. Keeping my eye on this for a good dip buy in that range.
DKNG: UpdateI currently own 1/4 of my position with an average cost of $41. We are at a critical point represented by the red line:
Bearish below $44
(x) Add another 1/4 at $39-43, I am not certain how low we will go so odds are once we touch the 150ema on low volume we will bounce
Bullish above $51
(x) It'll take a miracle (or a HF) to bring this back to $51 this week or next, so I'm not too bullish at this moment
I'm looking for stronger volume in the coming month, however I will add to my position below $43 regardless of volume.
My EOY PT: $66-75
DNKG PutsDKNG breaking past old support.
Confirmation: 8 EMA crossed below 50 EMA as bearish momentum continues. RSI still yet to hit oversold
New target at Pivot Support4 - $44.40
DKNG heading lower ?Need to see where the corrections end. Potential points markets as C on the chart.
Retesting Resistance MondayDraft Kings is set to retest resistance Monday, this small bump is good for a short term options call.
Low RSI and growing bullish divergence support this jump, close to a buy signal on the Bollinger bands as well.
An update on my DKNG call Originally I expected DKNG to hit and pass 50$ 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)
DKNG Wave 2 CorrectionDKNG is currently correcting. Yes, there is a lot to look at here, but just watch the Elliott Wave count and the trendlines. It broke a 2 month uptrend line yesterday, retested, and came back again. It has finished the overall upward Wave 1 move (made of 5 waves), and is now correcting down to one of the 4 green support fibs I've drawn. The 4 supports drawn are $47.92, $45.43, $42.94, and $39.87. We have confluence with a fresh (price has never touched) demand zone at $40, & it is an important psychological support for a stock that has so much bullish sentiment around it. If I had to guess, the correction would be most likely complete at $40, assuming none of the others hold.
From the drop this week, we've created stacked supply . This means that the next time price returns to this zone, DKNG is likely to get held up, unless bulls are extremely strong. The entire price area from $51.50 to $55.50 contains daily or hourly supply (since sellers have been in control since December 18th). So, be cautious next time price touches that area. As I said before, there is confluence at every fib support level. We have a used daily demand from $47 - $49, along with a smaller 2 hour demand within that. I believe price is likely to break this zone and continue correcting downward, but we have already seen a small bounce in the zone. This confirms there is still demand/buyers in that area. The next major demand zone is from $46 - $47, and finally, 1 hour demand at my preferred target of $41-$42.90 . The final zone around $41 is the unused one, making it the most likely zone to hold, as price has retested all other zones at least once. Zones being retested eliminates the buy orders in that zone that hold the stock up, so a zone that has never been retested still has buy orders ready to be filled.
At the time of writing, we have a bullish divergence on the hourly MACD . That tells me we're due for a pop back up in price very soon. DKNG is also technically oversold on the RSI, adding confirmation of a short term pop.
On this potential bullish move, I believe $51 is a good target to be out of a long position. The previously mentioned daily supply begins at $51.45, and my 2 month upward trendline has been broken, and is now confirmed as resistance. Price traded at the trendline, and could not break back above it. If we get a move up, price should extend far enough to hit this trendline, which is around $51, depending on how long the move takes.
In total, expect a month long pullback on DKNG. It had a very strong 60 days from November to December, and already seems to have started the correction.
Short Opportunity for DraftKings Inc (+40% Profit)The DKNG price is about to breach a key support trend line that opens up a short trade opportunity.
DKNG to 61?Dkng invere h&s watching for reversal here, over 52 we could see some bullish movement this week.
safe play: 55 C (1/8 or 1/15) good liquidity on both contracts
lotto/ day trade option: 55C 12/31 .58 or 60C 12/31 .10 (both contracts have great liquidity)
Cup & Handle Formed - Breakout over $56Pretty clear cup & handle on the daily IMO. Volume also supports my theory. I see a breakout over $56. I think it's only good news from here for betting/sports in 2021.
Huge Hourly Resistance at 58I think we are going to face a huge resistance at $58. Steel yourselves DKNG longers. See you on the frontlines, bulls! Hook 'em!
