A New Stock Drafted Into DraftKings Lineup: Here's What's Next

Draftkings Inc. DKNG shares are trading higher Monday after the company reported it has a deal to acquire Golden Nugget Online Gaming Inc. GNOG for $1.56 billion in stock.

Each Golden Nugget shareholder will receive a ratio of 0.365 shares of DraftKings stock for their shares of Golden Nugget.

DraftKings was up 1.49% at $52.36 at last check Monday.

DraftKings Daily Chart Analysis

• Shares saw a slight move higher inside of what technical traders would call a sideways channel.
• The stock is trading above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
• The 50-day moving average may hold as support in the future, while the 200-day moving average may hold as resistance.
• The $60 has held as resistance in the past and may continue to in the future, while the $45 level has held as support in the past and may hold again.
• The Relative Strength Index (RSI) saw a move higher the past few days and sits at 62. This means there has been more buying pressure in the stock than selling pressure.

What’s Next For DraftKings?

Bullish traders would like to see the stock build higher lows up to the $60 resistance. Bulls would then like to see a breakout above the level eventually with consolidation near this mark.

Bears would like to see the stock fall lower and break below the $45 support line. This could cause the stock to see a stronger bearish push following.

See also: How to Buy DraftKings, Inc. (DKNG) Stock