DraftKings Inc. DKNG and Penn National Gaming Inc. PENN are two gaming stocks that have been trending throughout the year, and both are nearing support levels for a possible bounce.
Below is a technical analysis for each chart. Is now the time to buy?
DraftKings Daily Chart Analysis: The daily chart above shows that the stock has been in a strong uptrending channel throughout the last year.
Connecting the lows on the chart shows the steady uptrend the stock has been in throughout the last year. This area was able to hold as support previously and may hold again in the future.
Connecting the highs shows the area where the stock has found resistance previously. This area may hold again as resistance in the future.
The stock is above the 200-day moving average (blue), indicating bullish sentiment. The indicator may hold as an area of support in the future.
Penn National Gaming Daily Chart Analysis: The daily chart above shows that Penn National stock is trading in a very similar situation as DraftKings: an upward channel and nearing potential support in the channel.
Connecting the lows shows the stock's uptrend and where it has found support in the past. This area may hold as support again in the future.
Connecting the highs shows where the stock has found resistance in the past in the upward channel. This area may hold as resistance again.
The stock is trading above the 200-day moving average (blue), indicating sentiment in the stock is bullish throughout the last year. The indicator may hold as an area of support in the future.
What’s Next? Bulls would like to see the stock continue making higher lows and stay in the channel.
Bears would like to see the stock stop forming higher lows and begin to fall. This could potentially indicate a further drop is incoming.
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