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DraftKings Takes A Dive After Positive Earnings: What's Next?

DraftKings Inc. (NASDAQ: DKNG) shares were trading lower Monday after the sports betting stock's first-quarter report. DraftKings posted a loss of 36 cents per share against Street expectations of a 51-cent loss.  DraftKings was down 6.58% at $45.24 at las...

05/10/2021 15:32

DraftKings Inc. (NASDAQ:DKNG) shares were trading lower Monday after the sports betting stock's first-quarter report.

DraftKings posted a loss of 36 cents per share against Street expectations of a 51-cent loss. 

DraftKings was down 6.58% at $45.24 at last check.

Related Link: Here's Why DraftKings Stock Is Moving Monday

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DraftKings Daily Chart Analysis

  • The stock traded in an upward sloping channel for a time before possibly breaking down below the channel Monday.
  • The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
  • Both of these moving averages may hold as resistance in the future.

Key DraftKings Levels To Watch

  • The stock has been trading in an upward sloping channel throughout the year and looks to have possibly broken out of the channel to the downside.
  • Connecting the highs and the lows on the chart with parallel lines shows the channel. The stock has previously been unable to cross these levels.
  • On Monday, the stock was able to break below the possible support line at the bottom of the channel. This could mean the channel is broken and the stock may start a new trend.

What’s Next For DraftKings?

Bullish technical traders would like to see the stock bounce near the support level and start making higher lows again. This could signal that the trend is still holding.

Bearish technical traders would like to see the stock continue to fall out of the channel and move lower. Consolidation below the channel could result in a future downward push.