DraftKings Inc. (DKNG) is expected to report their quarterly numbers on Feb. 26. After we looked at DKNG back on Oct. 15, the shares went lower and nearly reached our Point and Figure target of $33 and turned back to the upside. Things still looked bearish to me on Nov. 5 and I hesitated to go long when the downside risk was probably the lowest.
How do the charts look now?
In the daily Japanese candlestick chart of DKNG, below, we can see that prices have rallied from early November. The shares are trading above the rising 50-day moving average line and above the rising 200-day line. The movement of the On-Balance-Volume (OBV) line has not been consistent. The line improved in November but gave up the gains in December. The OBV line has recovered this year but not really strong and remains below its early October peak.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but just crossed to a take profit sell signal.