During the Lightning Round segment of Mad Money Wednesday night, one caller asked Jim Cramer about DraftKings Inc. (DKNG) . "The stock is going down. Let it cool off, but I like them very much," he responded. Let's check out the charts of the sports betting enterprise.
In the daily Japanese candlestick chart of DKNG, below, we can see that the shares have displayed weakness all month including a gap to the downside and a new low close for the move down. A number of the candles show the high at the open and the low at the close -- this means that sellers were active the entire session. The rising 50-day moving average line could be tested in the near-term.
The trading volume has been heavy so far this month so traders seem to be voting with their feet. The On-Balance-Volume (OBV) has turned down telling us that sellers are more aggressive with heavier trading volume on days when prices have closed lower. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.