$DKNG Super bowl run up ?A lot of volume picking up on DKNG with a channel break out after the inverse head and shoulders.Want to see a break above supply zone before T2.
DKNG trade ideas
❤️🔥 DraftKings: The Future Looks Good ❤️🔥❤️🔥 DraftKings: The Future Looks Good ❤️🔥
After rallying more than 40% since the start of 2021, the question comes to mind if $DKNG (Draftkings Inc) is getting overbought. We have seen many other titles in the consumer/technology space cool off significantly. But DraftKings seems to be going up without looking back. So if you're long as me, should you perhaps start taking some profits? If you missed he recent rally, does it make sense to still get in? I try to answer these questions here from my point of view.
Full disclosure, I'm in a long position since 26 January and have added to my position on two occasions. And I might add even further as I will explain below.
My initial position was a pure breakout trade from a level formed by gap resistance since 7 October 2020 and two reactions since mid December. One reference point I'm paying close attention to is $64.2 as that's where price reacted strongly to the downside in October last year. The structure leading up to this level now is a series of higher lows and I want to see this area broken to the upside for further continuation.
But it's not only technical factors this trade is based on. DraftKings actually has plenty of fundamentals supporting a long trade. Let's summarize:
🧑🤝🧑 Earlier this year, two new markets have opened up for DraftKings (Michigan and Virginia). These combined cover 6% of the US population.
🏈 Super Bowl is coming up and that means heavy sports betting. $500 million in legal wagers is expected to be placed this year on the Super Bowl alone, up 60% YoY.
💰 Debt free balance sheet and significant war chest with cash to spend aggressively on customer acquisition.
⚖️ Legalization of sports betting across large markets in the US is a very real possibility. Especially as covid related budget deficits will need to be dealt with.
📊 Venturing into opportunities outside of sports betting. For example through the acquisition of SB Tech, DraftKings now operates state lotteries in many European countries.
📈 DraftKings' current $866 million revenue forecast for FY21 is still a fraction of its revenue potential within the next several years. Stay tuned for guidance and Q4 earnings on 26 February.
📝 Summary 📝
I'm long DraftKings and I'm planning to add upon successful break of the $64.2 level. Yes I'm well aware the current valuation is a bit rich from a pure value investing perspective. But the interest fueling the recent rally is really based on future growth prospects. And as summarized above, the future looks good. My mid-term profit targets would be $75-80 and then $90-100.
Draftking PAYDAYplaces an option call till march.
DK going to see more move with more legalization on sport betting
Superbowl on sunday with there first AD
DraftKings Price action predictionhi guys,
So my ascending triangle play is in action. (PLEASE SEE BELOW FOR LINK TO THAT) My opinion on the price action is that we are still going towards the neon green line which i believe to be heavy resistance as shown if you look left on previous higher high.
I believe before we can move past the Green Neon resistance / target zone we need to:
1. Fill gap that i circled
2. Test support on previous resistance red line
3. Cool down alittle from overbought situ shown on RSI and STOCH Rsi
Thinks to look for:
1. This could still be a false breakout, so its really really important to see if it keeps support above the resistance line around the $55 level
2. If it keeps support watch if it stays range bound between red resistance line and green neon line. Some more touch points may be necessary before a move up or down depending on momentum/trend
3. Pay attention to STOCH its crucial at which end its at. During moves to the upside you'd want the stoch crossing up over the 20 level for example.
Lines of Defence:
Notice ive added 50SMA, notice it trending upwards towards resistance line. This SMA acts as support on the bullish case so watch it as well. If it comes towards the red resistance line at $55, its okay to assume it will act as support.
Notice the yellow trend line. It can act as support as well
Notice the .718 fib level, which can also act as support, provided we break down. In this scenario we;d have to observe carefully. If the Fib level can't hold support, it would be a corrective pullback.
Notice red trend line below the yellow one. This is the ascending triangle support trend line. If its a false breakout, it can retest this line.
My strategy is selling at this neon green line. Then observing the price action. If it plays out by testing the $55 level , i will wait for confirmation of support and buy at this level. I will also watch, if it breaks out past the green neon line, i will play it as an ascending triangle, wait for confirmation of a candle close above green line and buy for my second and final target at $75 or dark green line.
Please comment with your ideas, advice and anything else! Thank you and goodluck! If you like my ideas please like and follow! I Lets grow together~!
PS: Ive linked the ascending triangle play below which is in play as we speak.
DKNG - DraftKings - Coverage Initiated $100 Price Target0. Notes to follow;
1. We bought on September 11, 2020. Around $41.50 Mom's Birthday :) Love you Mom. Rest Easy Now Please :(
2. We were waiting for the Ark Fund to pick this up, and transition from Stock Market gambling, to Draft Kings;
3. Take a look at coverage and news on this Stock:
thefly.com
4.
DraftKings and the NFL expand their DFS and content partnership to Canada
Read more at:
thefly.com
5.
DraftKings rises after one of Cathie Wood's ARK ETFs discloses holdings 16:22 DKNG Shares of DraftKings (DKNG) closed with an advance of $4.67, or 9%, to $59.31 after a holdings report from Cathie Wood's ARK Next Generation Internet ETF, dated February 1, shows that the ETF holds 620,300 shares of DraftKings, giving it a weight of 0.49% in the fund.
Read more at:
thefly.com
6. We are holding for at least $250 .This is a great long-term 10 bagger.
- Dr Chelsea
Draftkings added to ARKW etfFund manager Cathie Wood added 620,300 shares of DraftKings (DKNG) to her Ark Next Generation ETF (ARKW) on Monday. My target is $64 by Friday. Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny a day for a month it = $5,368,709. Good luck and happy trading friends...
*3x lucky 7s of trading*
7pt Trading compass:
Price action, entry/exit
Volume average/direction
Trend, patterns, momentum
Newsworthy current events
Revenue
Earnings
Balance sheet
7 Common mistakes:
+5% portfolio trades, risk management
Beware of analysts motives
Emotions & Opinions
FOMO : bad timing
Lack of planning & discipline
Forgetting restraint
Obdurate repetitive errors, no adaptation
7 Important tools:
Trading View app!, Brokerage UI
Accurate indicators & settings
Wide screen monitor/s
Trading log (pencil & graph paper)
Big organized desk
Reading books, playing chess
Sorted watch-list
Checkout my indicators:
Fibonacci VIP - volume
Fibonacci MA7 - price
pi RSI - trend momentum
TTC - trend channel
AlertiT - notification
www.tradingview.com
DKNG Breakaway Gap ContinuationDKNG has broken out and hit my previous target on my last post at 61. Now this is looking for a continuation due to the high volume on the breakout gap. This is known as a breakaway gap. I think this will take us to the top of the range at 64.
$DKNG Super Bowl run upDraft kings UOA flows to 75 2/19. Once DKNG gets over 59 its going places. A OTM naked call 3 weeks out may be the move.
DKNG Bullish update PT 75Lots of buying coming in for this beast, also Cathie Wood added shares to her portfolio. In depth DD on my previous ideas but some key points
1. Super Bowl (increase sports betting activity)
2. Unveiling of a new sports book platform in Virginia
3. Legalizing mobile betting in different states
4. Cathie Wood loaded shares
5. ER end of month
Option contracts to look at, 50, 53, 55, 60 for 2/19
DKNG Wave 3DKNG saw a big push after-hours after ARK invest bought 620,300 shares of it. DKNG broke out of a minor wave 2 expanding triangle (or WXY correction) and tapped the 0.618. I can only see positive catalyst in the foreseeable future with major revenue generating opportunity like the Superbowl and continuous legalization of sports gambling by states
DKNGFINALLY Cathie gets involved. This thing was getting annoying to hold. Due to the consolidation since mid-November at a key area(s), I don't expect much resistance at ath. $73 next.
DKNG Run up into Super Bowl & ERDraftkings has seen a lot of action with lots of sports fans betting on various games recently. With new announcements, like their recent proposition team-up with Bleacher Report for a Super Bowl LV deal and over 200 varieties of prop bets for the weekend. DKNG also announced they have had 4 consecutive months of $100 billion+ in revenue, which bodes well for the company going forward. The stock is picking up momentum, gaining lots of buying volume, with RSI on support. After trying to break out of the symmetrical triangle recently, DKNG looks prime to move into the 60s+ once again.
PT1 62, PT2 ATH, PT3 71-77
$dkng - chillin at daily supportbelow 52.96 we can see 49.32.
above 55.81 we can see higher moves with little resistance.
see fib levels and suppy.
$dkng - symmetrical triangle we are headed for $83.
look or a breakout above the purple trendline. after we clear 56.77, we can easily see 62.01. after 62.01 we see the 65 area which is a difficult area to clear. past 65 easy 83+ target.
65 is an important level.
one thing i will be watching is the negative divergence...
$DKNG 1D A company thats undervalued IMO (Super Bowl run up)A break above 58 can send DKNG to 65 and more easily. Set your alerts and implement a SL. A 30 percent lost is better than taking a 70 percent lost.
Draftkings looking to breakout of an Ascending TriangleHi Guys,
I enjoy posting ideas as its a great way to express the things ive been learning and to get other peoples perspectives. Great way to spin the cycle of learning through each other.
So first things first. We've been trending up an Ascending Triangle pattern since Nov. 2nd after creating a new High on the Daily Timeframe. Currently we are in a middle of a breakout, testing support on the resistance line.
What to watch here is:
Volume - Volume should increase to maintain the momentum upwards
Todays close must be above the red resistance line of the triangle.
What to watch to see if uptrend continues:
RSI continuing upwards, it printed a higher low so we need to see a higher high
MACD blue and red line mouth opening wider
MACD Green bar increasing
STOCH RSI continuing upwards past the 80 level
Other points:
We are above the 50SMA which gives an uptrend or bullish bias
Also notice the yellow line i drew above the MACD. Before a breakout its nice to see MACD flatlining, this means it was in a period of consolidation where momentum was in a standstill due to perhaps almost equal buying and selling.
Comparing this breakout to previous:
it printed a lower high RSI
MACD was also dying out, turning from Green to white which indicates reduced momentum.
Volume didn't decrease which before breakouts is something to look for. The volume before the green candle that broke through the resistance line had a slight decline. Its nice to see that.
Trading Ascending triangles:
Take a position after confirmation of a candle closed above the horizontal resistance line. Stop loss or limit should be slightly below the resistance line. To determine price targets, you take the measure of the base of triangle in this case is the yellow line I drew and labeled and you put it to the horizontal resistance line. So my first target is the previous high. Ill look to see what the situation is before confirming the higher price target. Which ill be observing volume and momentum.
My second target and the price target approximated by rules of Ascending Triangle is highlighted by the darker green line above. Around $75.
I Wish everyone luck and i hope everything made sense. Please comment if you agree or disagree. Im in the process of learning so comments are welcome :). Thanks.
DKNG Ready to push higherDKNG looks like its finally ready to move up, probably testing it all time highs around 62-63
