Wagering site DraftKings (DKNG) has continued to advance. Let's check on the odds of further gains or a period of sideways consolidation as the NFL regular season approaches.
In the daily bar chart of DKNG, below, I can see that the shares have made new highs for the move up from the December low. Prices trade above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line is firm and the Moving Average Convergence Divergence (MACD) is bullish.
In the weekly Japanese candlestick chart of DKNG, below, I see a positive-looking chart. Prices are in a rising trend and trade above the bullish 40-week moving average line.
The weekly OBV line continues to perform and tells me that buyers remain more aggressive than sellers. The MACD oscillator is still bullish.
In this daily Point and Figure chart of DKNG, below, I can see a price target in the $43 area.
In this weekly Point and Figure chart of DKNG, below, we can see a better view of the base pattern and the $43 price target.
Bottom-line strategy: In my June 13 review of DKNG I wrote that "My technical strategy remains the same for now. Stay long DKNG. Keep your stop at $21 for now. The $43 area is looking likely but may turn out to be an interim price target."
Continue to hold longs but raise stop protection to $24 now.
