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Good technical signals and a possible breakout for DRAFTKINGS INC-CL A.

By Mill Chart

Last update: May 16, 2024

A possible breakout setup was detected on DRAFTKINGS INC-CL A (NASDAQ:DKNG) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:DKNG.

DKNG Daily chart on 2024-05-16

In-Depth Technical Analysis of NASDAQ:DKNG

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, DKNG scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, DKNG has proven to be a steady performer, scoring decent points in every aspect analyzed.

  • Both the short term and long term trends are positive. This is a very positive sign.
  • When comparing the yearly performance of all stocks, we notice that DKNG is one of the better performing stocks in the market, outperforming 93% of all stocks. We also observe that the gains produced by DKNG over the past year are nicely spread over this period.
  • DKNG is part of the Hotels, Restaurants & Leisure industry. There are 135 other stocks in this industry. DKNG outperforms 91% of them.
  • DKNG is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so DKNG is lagging the market slightly.
  • In the last month DKNG has a been trading in the 39.04 - 46.17 range, which is quite wide. It is currently trading near the high of this range.
  • Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

Check the latest full technical report of DKNG for a complete technical analysis.

How does the Setup look for NASDAQ:DKNG

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:DKNG is 8:

Besides having an excellent technical rating, DKNG also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 43.72, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DKNG in the last couple of days, which is a good sign.

How to trade NASDAQ:DKNG?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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DRAFTKINGS INC-CL A

NASDAQ:DKNG (5/29/2024, 7:00:02 PM)

Premarket: 35.65 -0.31 (-0.86%)

35.96

-0.65 (-1.78%)

DKNG News

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DraftKings Inc. and FanDuel-owner Flutter Entertainment Plc fell on Tuesday after the Illinois Senate passed legislation that would raise taxes on sports betting.

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Sportsbooks face an uphill fight against higher taxes. They're out of state operators with government concessions. And DKNG stock is hurting.

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