What's Going On As DraftKings Stock Tanks Friday?

Draftkings Inc. DKNG shares are trading down Friday after the company reported the fourth-quarter fiscal year 2021 sales growth of 47% year-on-year to $473.3 million, beating the analyst consensus of $445.18 million.

The stock has recently fallen below a support level and is seeing a period of uncertainty.

DraftKings was down 18.09% at $18.07 at publication Friday afternoon.

See Also: Why DraftKings Shares Are Plummeting Today Premarket

DraftKings Daily Chart Analysis

• The stock is falling below support in the channel after it crossed below the $19 level. This shows the stock is seeing bearish movement and could have a stronger bearish move if it can hold below this level.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has pushed lower the past couple of days and now sits at 35. This shows more sellers moving into the stock as it breaks below support showing selling strength. If this RSI continues to stay low, the price may continue falling and see a strong bearish move in the future.

What’s Next For DraftKings?

The stock has been in a steady downward fall and now looks even more bearish as it breaks below a previous area of support. If the $19 level holds as resistance, the stock could see a further push lower in the future. Bearish traders want to see the stock continue to form lower highs as it fades lower showing a strong resistance area. Bullish traders are looking for the stock to bounce and begin to form higher lows and head toward the $45 level.

Photo by Chris Geirman on Unsplash