Technical Pulse: DraftKings Inc December 5, 2022 347

 

DraftKings Inc (NASDAQ: DKNG) Potential breakout of a bullish cup & handle formation to retest the resistance zone at U$25.80-28.50:   

 

  1. The price is on the cusp of a bullish cup & handle formation breakout if it manages to break above the handle downtrend channel in the near term.
  2. The Moving Average Convergence Divergence (MACD) technical indicator created higher lows, while the price made lower lows recently, signaling bullish divergence and is also currently displaying increasing momentum.
  3. The price could retest resistance zone 1 at US$19.80-21.40 first before heading to resistance zone 2 at US$25.80-28.50, where the US$27.50 swing high level is confluent with a previous support level now turned resistance, and also the projected target of the cup & handle breakout, taking the breakout height of the cup projected onto the handle breakout point.

 

*Expected timeline of the trade is 13 weeks from the date of report issuance.

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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