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DraftKings Stock: Is the Bullish Momentum Over in DKNG Stock?

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DraftKings Stock: Is the Bullish Momentum Over in DKNG Stock?
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DraftKings Inc., DKNG stock price took support near $25.00 and recovered around 15% from the recent swing low. Ii formed a bullish trend continuation pattern and buyers seem to be getting active again. 

DraftKings stock price regains the 50-day EMA showcasing that the trend is still in an upward direction. The 200-day EMA slopes higher confirming the uptrend and showcasing the aggressiveness of bulls. 

DKNG stock performed well in the past few months and quarterly earnings are also satisfying, beating the analyst estimates. Due to this $DKNG investors turned bullish and participated in the rally. 

At the beginning of August, DraftKings stock price tried to break the $34.00 hurdle. But unfortunately, the attempt failed and prices faced sharp rejection. Later, the sell-off continued, and prices corrected by 25% (approx.) in a short period of time. 

The short-term correction in the DKNG stock halted near $25.00 and bulls came forward to push the prices higher. DraftKings stock price closed the previous session at $29.67 with an intraday rise of 2.70%. The market capitalization stands at $13.77 Billion.

Will the DKNG Stock Price Retest the Previous High Soon?

DraftKings Stock: Is the Bullish Momentum Over in DKNG Stock?
NASDAQ: DKNG daily chart by TradingView

DKNG stock price is in the recovery phase and buyers are trying their best to regain the $30 mark. 

DraftKings stock forming higher candles and buying volumes are also on the rise. It shows that the investors had the recent downfall as an opportunity to accumulate DKNG shares at lower levels. 

Till the DraftKings stock price sustains above the $25.00 support, the probability of reaching $34.00 remains high. However, the next phase of the rally in the $DKNG will be visible when buyers are able to break the $34 hurdle. 

The technical analysis suggests that the bullish momentum in the DKNG stock is still intact and more upside is pending. 

DraftKings Stock is Bullish on Weekly Time Frame

  
        

DraftKings stock price shows a bullish pattern in the daily as well as weekly time frame. The broader market index like Nasdaq Composite is recovering which is improving the market sentiment. If the recovery in the indices continues then it might positively affect the prices of DKNG stock. 

The MACD curve in $DKNG is reversing upward and generating a fresh positive crossover. It showcases bulls are again returning back to track. The RSI at 55 slopes upward denoting the strength of buyers and more room for upside is open.

Conclusion

DraftKings Inc., DKNG stock price took support near $25.00 and buyers came forward to push the prices higher. The technical analysis suggests that the positive momentum in DraftKings stock is not over and more upside is possible.

Technical levels
  • Resistance levels: $30.00 and $34.50
  • Support levels: $25.51 and $22.65
Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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