dkng one of the most bearish monthly candle closes ive ever seennot actually shorting this but damn this is bearish
DKNG trade ideas
DKNG YOLO - My final trade of the yearDKNG has been beaten to death and more in the last month due to a combination of: pipe share lockup expiration, dilution from 2nd capital raise, market panic from European COVID 2nd wave (algo selling from COVID headlines), and political volatility which came with the Dow dropping 800+ multiple days (elections and failed stimulus talks). Additionally, in anticipation of the lockup expiration too many traders piled on the easy short trade all at once.
Trade Thesis:
- Potential double bottom at $37.50 on the 1hr, need confirmation tmr.
- 1.618 fibbonaci extension converging with major support/resistance.
- RSI divergence and oversold levels under 30 for last 2 weeks.
- Decreasing volume.
- Short side was too heavy all at once which led to the unnaturally rapid drop. Many shorts were also closed this week to make up for other losses.
- Safe to say at this point no stimulus is expected until after Election Day at minimum, but more likely to be after a confirmation (sometime before inauguration).
- Dilution and insider selling likely fully priced in.
- The two largest sports betting events are a few months away (Super Bowl and March Madness)
- Online betting referendum on 3 state ballots.
- Upcoming earnings on Nov 12, prior guidance spotty not accounting for college games, etc. and positive expectations from PENN.
- PENN earnings blew estimates nearly 100%, yet it could not hold any gains for longer than a few hrs. This is reflective of the general market uncertainty and not due to specific company or sector news, which shows that fear is currently controlling the narrative.
Risks:
- Market crash - hedge with VIX and SQQQ calls, long treasury zeros.
- NFL cancelling the remainder of the season - possible but extremely unlikely.
- If holding options, could see extended consolidation on the green support line during the contested election period up to 79 days from nov 4. But ballot referendum should be enough to move.
Catalysts:
- Nov 4 Election Day (expecting contested results, but we are looking for the referendum results from ML, LA, and SD)
- Nov 12 Earnings
- Additional stimulus announcement
I believe that with the majority of selling pressure now finished, when the overall market calms down we will see the spring that has been coiled up for a month plus be released all at once. Looking for big volume with upward price action exiting current channel, further supported by short covering. Due to the rapid drop with no consolidation at any point, a technical bounce alone based on no news can be 7%-12%.
I am entering half my position today, with the rest tomorrow to avg in the potential Friday sell off before the election weekend.
Entry: $37.69 (20 Nov $50 calls / $0.65)
Stop: $34.69
T1: $47 | Daily ichimoku cloud, 1 fibonacci extension
T2: $50 | Kijun line (red base line), .786 fib line
T3: $55 | Gap fill, .5 fib line
Draftkings Hitting Potential Reversal Zone Broke out of triangle consolidation, raced to new highs, became overextended and fell back to the breakout zone, which turns support. Bigger trend is up (well above rising 200-day) and RSI is in oversold zone (30-50), as it was in July. Looking for short-term upside catalyst.
dkng more than a retrace? i think sonot much that makes this chart look bullish besides bullish divergences on the indicators. i wont be trading equities until after the election but this chart looks bearish
DKNG Correction?Obviously the major turning point would be if sports games get shut down - they probably won't do it now to force the series to go through but after that is all fair play.
Looking at a possible B wave bounce then back down
Draft Kings has had a great year regardless of the 40% drop Fib retrace from the March lows to the Oct high shows a .5 at $37. Dead cat bounce to the .382. Next resistance zone and then further drop from there to the .618. Just some thoughts.
Knocking on Support. EnterTrying out this swing trade indicator. Looks like it is on support right now and the resistance levels are marked above (R1+).
If you enter best to use a tight stop loss just incase. Don't want to lose your shirt.
Hope this helps.
Good trading!
DKNG DraftKings Reach Oversold StatusInvestors are beginning to get spooked out of their shares due to multiple factors: COVID-19 Positive Test Results in the NFL and PIPE Shares officially becoming unlocked.
Shareholders are forgetting the Major Supporting Catalysts to this company:
-Exclusive Deal with ESPN/Disney
-Becoming an exclusive partner to multiple Professional Sports Teams and Leagues (NFL/MLB/PGA/NBA)
-Disney holding a Major Stake
I Highly Suggest you consider adding before this stock regains strength.
$DKNG Bull Wedge?I've been disappointed in $DKNG. I have a trade on and I'm currently upside down. I like the business model on this but I will let price action guide me. I am looking for this to break up and regain the 50 SMA where I have an alert. If it can do that I will be adding to my position. If not, I will be liquidating and re-evaluating. Ideas, not investing / trading advice.
DKNG not quite out of the woods yet, short term analysisDraftKings 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.
DKNG more bloodDKNG next support is near 35-36 we could see more bloodshed this week with covid cases and negative stimulus talk, If DKNG can hold above 40 we will see a strong move up but volume is low, under 20 day ema, i wouldn't play calls for short term. perfect opportunity to add shares or play puts!
$DKNG👋🏾
With the FANG stocks fully in pullback mode, I'm expecting the broader market to follow Apple, Google, Facebook, and Tesla lead and correct new huge move up from the March low. I will slowly start getting back in between the $31 and 26$
DKNG run up to earnings. LONG positionWe got nice support and a bullish divergence on lower timeframes.
Any criticism or tips welcome!
Stocks to watch on Monday #2I tried to collect the causes for going long/short on DKNG.
Whatever you decide, please watch the signs and cut the losses if the other scenario plays out.
I burned myself so many times not closing the trade, however, there was a very clear sign for it.
Trade safe and check my other ideas!
$DKNG Daily MACD Curling back up! I've been buying $DKNG for the last week now. Support was held very well, we bounced a few times off the long term trendline all last week. Staying bullish on this one and averaging down further if it hits the 200dma. #Bullish
ABC BullishDKNG seems to be giving it all she can to hang in there..It is looking like she may
DKNG looked very bearish for a while
NV is trying to perk up but is low right now
Not to long entry level yet for this pattern as of today
Possible stop below 40.4 (so close by)
Not a recommendation
DKNG LongGot beaten down heavily with bad news for last weeks. Retest of 40.40 level with strong rejection. Bullish indicators on daily. Created a new trendline.
Entry: validation of trendline, bullflag and break above 45.81.
PT: 50.23
$DKNG It's Gotta Reverse NowThis looks like a strong reversal coming, look at the RSI ... blue line crossing red
Look at the SMA/EMA lines..., looks like a curl up coming
