So everybody seems to be buying the Draft Kings hype lately. I've been told there's a Cup and Handle forming up, good deals ahead, and so on and so forth.
From the way I see it this is a time with too much uncertainty in the long term. And I think we can see that reflected on the stock price.
- First we can see two trends, in yellow, forming a symmetrical triangle that broke downwards on December 28th.
- Price is directly testing that 50 MA (red line). Moving averages act as a good form of dynamic areas of support and resistance. Just by looking at previous price history we can see that every time bulls failed to hold that level at the 50 MA, prices fell down dramatically for a considerable period, and conversely when bears didn't hold that spot, bulls started rallying.
- We have several indicators already, or about to be, giving bearish signals (MACD, RSI, Stochastic). On my screen, we can see the price falling and currently trading inside the Ichimoku cloud.
My take is that if we lose this level of weekly support, which coincides with the 50 MA support, price is gonna keep dropping steadily for a while. We need just another failed retest of that descending trend-line acting as resistance (yellow) to confirm this theory - which is also forming a descending triangle.
In cyan blue arrows the path I think price is gonna follow. I believe that if we do form a descending triangle it's gonna signal a price continuation - best time to buy is gonna be when price squeezes near the end of the formation.
Could be wrong. Maybe the hype is real. Maybe that decline of volume over time is signaling a local bottom on that weekly support. We'll see.
Best of luck, lads.
From the way I see it this is a time with too much uncertainty in the long term. And I think we can see that reflected on the stock price.
- First we can see two trends, in yellow, forming a symmetrical triangle that broke downwards on December 28th.
- Price is directly testing that 50 MA (red line). Moving averages act as a good form of dynamic areas of support and resistance. Just by looking at previous price history we can see that every time bulls failed to hold that level at the 50 MA, prices fell down dramatically for a considerable period, and conversely when bears didn't hold that spot, bulls started rallying.
- We have several indicators already, or about to be, giving bearish signals (MACD, RSI, Stochastic). On my screen, we can see the price falling and currently trading inside the Ichimoku cloud.
My take is that if we lose this level of weekly support, which coincides with the 50 MA support, price is gonna keep dropping steadily for a while. We need just another failed retest of that descending trend-line acting as resistance (yellow) to confirm this theory - which is also forming a descending triangle.
In cyan blue arrows the path I think price is gonna follow. I believe that if we do form a descending triangle it's gonna signal a price continuation - best time to buy is gonna be when price squeezes near the end of the formation.
Could be wrong. Maybe the hype is real. Maybe that decline of volume over time is signaling a local bottom on that weekly support. We'll see.
Best of luck, lads.
Order cancelled:
Pattern invalid as prices broke out the formation. Any buys around that weekly support level at 45.5 would still have been a good buying opportunity.