DraftKings stock price is trading with bullish cues and buyers are attempting to break the trendline resistance. However it will be difficult for bulls to dominate on the higher levels. The previous few sessions were in the favor of bulls and stock is up by 23% on the monthly basis. Currently, NASDAQ : DKNG stock price is trading at $14.11 with the intraday gains of 3.52%
Will Draftkings stock price be able to break the $20.00 hurdle ?
On a daily time frame, DraftKings stock is in a downtrend and slipping down while forming lower low swings but recently some positive development in the price action is visible. DKNG stock had tried multiple times to break out of a 50 day EMA but unfortunately prices got rejected due to bear dominance on higher levels.The downward sloping 200 day EMA(green) indicates the positional trend to remain the bear grip, however if bulls succeed to break the $16 hurdle level we may see a trend reversal in the favor of bulls.
DaftKings stock is facing a tough resistance at the downward sloping trendline which is acting as immediate resistance for bulls but surprisingly bulls had succeeded to break out of the 50 day EMA hurdle which has bought the stock into the spotlight of traders and hopefully in coming days bulls will trade above the trendline resistance.The prices seem to be stuck in the narrow range between $10.00 to $16.00 and likely to breakout on the either side soon. However the probability of upside breakout will be high if buyers keep the prices above the 50 day EMA.
DraftKings stock has also been impacted by the global market sentiment and the probability of recovery increases if the Nasdaq index holds the $11K mark in the coming days. DKNG technical indicators like MACD have generated a positive crossover which indicates the bullishness may continue for coming days and the RSI at 63 sloping upwards denotes the strength of bulls.
Summary
DraftKings Inc stock had reversed upwards from the demand zone but the confirmation of the short term trend reversal is still awaited. According to technical analysis, DKNG prices are trading near to the supply zone and it will be difficult for bulls to dominate to hold the higher levels. However, if bulls succeed to break out of the $16.00 hurdle level, then the Investors may look for buying opportunities for the target of $20.00 and above by keeping $10 as SL.
Technical levels
Resistance levels : $16.00 and $20.00
Support levels : $11.00 and $10.00
