👑 Draft Kings: Anatomy of a Stock That Hit Rock Bottom
Draft Kings, like many other stocks, is showing major signs of a bottom.
Draft Kings looks like it’s ready to explode higher. Forward this email to a friend who might benefit from my analysis.
Check out the Draft Kings DKNG 0.00%↑ weekly chart below. Read these bullets as you look at the price action.
Confluence of Action in DKNG
We have a confluence of factors that point to a bottom in Draft Kings.
Chart Pattern = Double Bottom, a very popular trading set-up that investors and traders look for, before buying.
Price Point = price just broke out about the recent highs of August, 2022 and February, 2023… a close above this level from two weeks ago could see a lot of short-sellers cover. Don’t forget, traders manifest these levels!
Momentum Indicator = MACD has turned bullish while price remains suppressed. Another sign many investors and traders look for, before buying.
Money Flows = We have another bullish divergence on money flows, where price has trended down, but institutional money flows are pouring in. Traders see this, and act.
Confluence is defined as an act or process of merging. The best part is that other traders see these signals, and act on them… manifesting the price action.
Manifesting Higher Prices
Here, we have a charting set-up (a double-bottom which already manifested higher prices)…
…combined with a price set-up (a breakout above recent highs),
…combined with bullish divergences in both momentum and money flows.
All of these processes are merging, making DKNG a great prospect to buy.
DISCLAIMER: Never invest what you can’t afford to lose. I personally own a nice position in DKNG at an average of $19/share. Relative to other stocks, it’s speculative since they don’t have positive earnings yet, so I’m basically buying market share as sports betting becomes mainstream. Not to mention, IBD only rates highly profitable stocks, but DKNG’s forward earnings potential is SO HIGH that it’s recently made the IBD 50 list the last few weeks. I also like this stock because DKNG makes money from peoples’ vices, in a convenient and efficient way.