A large sell-side firm upgraded DraftKings ( DKNG) and wrote in a note that DKNG was an "opportunity too big to ignore" and was an "overweight" with a $31 price target and the stock has rallied Wednesday. 
In our Jan. 13 review of DKNG, I wrote that it's not my "typical strategy of buying a stock in a downtrend but I am only pitching the idea of a trading bounce for nimble traders who can get in and get out."
The Super Bowl is getting closer, so let's pay another visit to the charts.
In this updated daily bar chart of DKNG, below, we can see that prices show the start of a bounce. The trend is still down but trading volume has increased and the On-Balance-Volume (OBV) line shows the start of some improvement. The higher lows on the 12-day price momentum indicator are doing their job in telling us that the decline has slowed down.
In this weekly Japanese candlestick chart of DKNG, below, we can see that the most recent candle pattern is a spinning top. A spinning top has a small body, telling analysts that there is a balance between buyers and sellers. A bullish candle after the spinning top would identify a bottom reversal.
In this daily Point and Figure chart of DKNG, below, we can see that a $42 price target was reached and exceeded.
In this weekly Point and Figure chart of DKNG, below, we used a five box reversal. Here a price target of $9 is shown.
Bottom line strategy: Can DKNG rebound to the $31 area? It looks like it, now that a fundamental analyst has put their reputation behind it. Again, this trade is just for nimble traders to scalp.
