DKNG not quite out of the woods yet, short term analysis

24 oct. 2020

DraftKings is not quite out of the woods yet to take on a LONG position. The stock did bounce nicely off a consistent trend line which has seen multiple reactions as well as coinciding with the 100 day moving average (SMA) and a Fibonacci retracement level, meaning the area does act as a STRONG support level. Momentum indicator (MACD) is showing a slow down in the Bearish momentum. We may consider a potential options swing trade playing the support bounce up to the next resistance area which is the 50 day moving average (SMA) at 44.5. The weekly OCT30 expiration 45 strike calls have good volume (20k) and open interest (OI 14k) for 1.00 premium. We are expecting a test of the 44-45 area before a retest of the trend line support before an upward continuation.

27 oct. 2020

Ordre annulé