• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Has DraftKings Corrected Enough to Warrant Purchase?

Let's wait and see if we get a test of the top end of the $53-$48 area.
By BRUCE KAMICH
Apr 14, 2021 | 08:03 AM EDT
Stocks quotes in this article: DKNG

In a special "Voice of America" segment of Mad Money Tuesday night, Jim Cramer took calls from viewers to hear what's on their minds.

The first caller asked whether now's a good time to start a position in DraftKings (DKNG) . Cramer said he liked this stock very much as gambling gains in popularity across the country.

We reviewed the charts of DKNG on April 6 and wrote that "I must admit that I am not a fan of betting though I have participated in office pools, which are not the same thing. Looking at the charts of DKNG I would wager that prices could correct in the short-run before further gains in the long-run."

Let's check and see if anything has changed.

In this updated daily bar chart of DKNG, below, we can see that the share price of DKNG has weakened since our April 6th update. Prices have broken the late March low - not a very important level to defend but still giving the bears some solace. The slope of the 50-day moving average line is cresting.

The On-Balance-Volume (OBV) line continues to point lower telling us that sellers are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed below the zero line for an outright sell signal on this time frame.

In this weekly Japanese candlestick chart of DKNG, below, we still see a mostly bearish chart picture. On the plus side the last three candle patterns or bars show lower shadows which tells us that traders are rejecting the lows.

The weekly OBV line is still pointed down and the MACD oscillator has crossed to the downside for a take profit sell signal.

In this updated daily Point and Figure chart of DKNG, below, we added the volume by price information on the left scale. Prices just made a new low for the move down. A $42 price target is shown but notice the increased activity between $53 and $48. This zone or area is likely to act as support and will likely present buyers of DKNG with an opportunity to go long risking below $48.

Bottom line strategy: So far so good. DKNG is correcting and still pointed down. Let's wait and see if we get a test of the top end of the $53-$48 area noted above. This could be a buying opportunity. Stay tuned.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Sports business | Gaming | Mad Money

More from Investing

The Market's 'Generals' Are Now in the Crosshairs

James "Rev Shark" DePorre
May 18, 2022 4:42 PM EDT

We've reached the next phase of the bear market, as big names get hit.

These Three Small-Cap Stocks Boast Big Dividends

Bob Ciura
May 18, 2022 3:00 PM EDT

Look beyond the mega-cap names for income investing to the more inclusive -- and often smaller -- Dividend Champions.

Can Nvidia Make a Rebound Rally Ahead of Earnings?

Bruce Kamich
May 18, 2022 2:32 PM EDT

Here's what I'd look for NVDA to do in the days ahead.

After Cisco Reports, Will There Be a Tradable Rally?

Bruce Kamich
May 18, 2022 12:04 PM EDT

Let's see how the charts look before earnings Wednesday night.

ServiceNow Picks Up a New Bull on Their Shares

Bruce Kamich
May 18, 2022 11:20 AM EDT

Here's what aggressive traders could do now.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • 03:07 PM EDT PAUL PRICE

    Why Is Walmart Down Big Today?

    Besides its poor earnings report Walmart was way...
  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login