DKNG Potential Head and Shoulders"
A. A strong rally, climaxing a more or less extensive advance, on which trading volume becomes very heavy, followed by a minor recession on which volume runs considerable less than it did during the days of rise and at the Top. This is the 'left shoulder.'
B. Another high=volume advance which reaches a higher level than the top of the left shoulder, and then another reaction on less volume which takes prices down to somewhere near the bottom level of the preceding recession, somewhat lower perhaps or somewhat higher, but, in any case, below the top of the left shoulder. this is the 'Head.'
C. A third rally, but this time on decidedly less volume than accompanied the formation of either the left shoulder or the head, which fails to reach the height of the head before another decline sets in. This is the 'right shoulder.'
D. Finally, decline of prices in this third recession down through a line (the 'neckline') drawn across the Bottoms of the reactions between the left shoulder and head, and the head and right shoulder, respectively...
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Technical Analysis of Stock Trends / Robert D Edwards, John Magee, W.H.C
Bassetti. -- 9th ed. (59)
A near textbook example of an incomplete head and shoulders pattern, which indicates a major trend reversal.
The pattern is not yet confirmed.
One issue is the strong reaction off the neckline, shaded in red, but the overall descending volume is a strong indication.
An additional technical indicator is the break and hold below the 50D EMA
This is an analysis only, not investment advice.
