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- 1 DraftKings Stock Price (NASDAQ: DKNG) corrected 15% (approx.) from the recent swing high.
- 2 DKNG stock price forms a double-top pattern.
- 3 DraftKings Inc. stock price drops below the 50-day EMA.
DraftKings Stock Price (NASDAQ: DKNG) fell approximately 15% from the recent swing high at $32.65. It faced a strong rejection and prices began to decline by forming lower low candles.
DKNG stock price dropped below the 50-day EMA which hurt the investors’ sentiment and showed signs of bearish trend reversal. The recent downfall eroded the 50% gains of the previous month and might retest the August low.
DraftKings stock forming a double-top bearish pattern. It indicates that the bullish momentum has halted and stock is preparing to enter into a distribution phase.
Previously, in August DNKG’s share price took support near $26.00 and formed a bullish engulfing pattern. Later, the buyers come forward to push the price higher. The rally stretched to $32.00 which created a positive hope for the long-term investors. But, $32.00 turned out a strong hurdle and sellers succeeded in pulling the prices down.
This would be the second attempt of bears to reverse the trend downward. So, if they succeed then be prepared for another phase of sell-off.
Will DraftKings Stock Price Defend $26 Support?
DraftKings Stock Price (NASDAQ: DKNG) entered into a correction phase. The sellers seem more active as compared to buyers. So the possibility of more downfall is high. Investors of DKNG stock are expecting that if the price declines further and tests $26 then previous patterns might be repeated.
Till the DKNG share price sustains above the $26.00 level the positional trend is expected to remain in an upward direction. However, if the sell-off continues and the bear succeeds in pulling the price below $26.00. Then 5% to 10% more downside will open.
DKNG Stock Price Follows the Broader Market Path
DKNG stock price closed the previous session at $27.92 with an intraday rise of 2.05%. Buyers are trying to defend the lows and may give the short-term pullback.
However, the broader market indices like Dow Jones, S&P 500, Nasdaq Composite, and Russell 2000 are reversing down. If the correction continues in the broader market then it may negatively impact DraftKings shares. The MACD curve generated a negative crossover indicating bearishness. Whereas, the RSI at 40 denotes the down might halt soon and enter consolidation.
Conclusion
DraftKings Stock Price (NASDAQ: DKNG) corrected 15% from a recent high. But still, no signs of a rebound are visible in stock. The analysis suggests that if the DKNG stock test $26.00 then we might see a rebound.
Technical levels
- Resistance levels: $32.00 and $34.56
- Support levels: $25.33 and $22.62
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.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
