DraftKings: We're 'Doubling Down' on Our Bullish Recommendation

Here are our latest price targets.

In my April 19 review of DraftKings (DKNG)  I wrote that, "Traders who are long DKNG should continue to hold those positions. Raise stops to $16. Strength above $22 should precipitate further gains. The $28 area and then the $32 area are my price targets now."

The shares are moving up nicely towards my $28 price target so let's review our strategy.

In the updated daily bar chart of DKNG, below, I can see a low at the end of 2002/early 2023. The shares started a rally and now stand firmly above the rising 50-day moving average line and above the rising 200-day line.

The On-Balance-Volume (OBV) line turned higher to confirm the price action and tell us that buyers of DKNG are being more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is bullish too.

 

In the weekly Japanese candlestick chart of DKNG, below, I can see the same base pattern that impressed me back in April. The shares trade above the rising 40-week moving average line.

 

The weekly OBV line shows us a rising trend for the past year. The MACD oscillator continues to move higher above the zero line.

 

 

In this updated 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, I can see the same $43 price objective.

 

 

Bottom-line strategy: Traders who are long DKNG should continue to hold. Raise stops to $21 from $16. My price targets are now $28, $32 and now $43.

 

Employees of TheStreet are prohibited from trading individual securities.