DraftKings is the right concept at the right time. This gaming and betting company went public last year with great fanfare. When the pandemic arrived, it fell like a rock tossed in the ocean. The stock was teetering near single digit status for a month. Recent deals with big entertainment companies and casinos has put this name (and others like Barstool Sports) back in the spotlight.
The chart and technicals show positive patterns. That strong move up during April and May consolidated nicely over the summer. Recent high volume trends put the name in a good spot. Note the solid relative strength and impressive money flows, which show big institutional sponsorship. With a series of higher highs and higher lows, this stock is making a statement. We could see a move up to mid 50’s to low 60’s very quickly as the bettors return to the sports world.
Take a deeper dive into the chart action of DraftKings (Nasdaq: DKNG). Learn how to read the technicals as Bob marks up our chart of the month.
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About DraftKings
DraftKings Inc. operates as a digital sports entertainment and gaming company, and it provides users with daily sports, sports betting, and iGaming opportunities. It also designs and develops sports betting and casino gaming platform software. The company distributes its product offerings through various channels, including traditional websites, direct app downloads and direct-to-consumer digital platforms. It is headquartered in Boston, Massachusetts.
