DraftKings Is At A Resistance Level: Can It Break It?

DraftKings Inc. DKNG shares are trading higher Wednesday, possibly moving after Cathie Wood’s Ark Invest grabbed 1.07 million shares estimated to be worth around $60.6 million.

DraftKings shares were purchased in the Ark Innovation ETF ARKK, the Ark Next Generation Internet ETF ARKW and the Ark Fintech Innovation ETF ARKF.

DraftKings is up 5.12% at $59.36 at the time of publication.

See Also: DraftKings Partners With Simplebet To Expand Sportsbook In-Game Offerings

DraftKings Daily Chart Analysis

• Shares have been trading in a sideways channel, now nearing resistance and looking to break out of the channel.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The $60 has held as resistance in the past and could again as the stock nears the level. The $45 level has previously been able to hold as a support level and could hold again in the future.
• The Relative Strength Index (RSI) has been moving lower and now sits at the 73 level. This means the stock has entered into the overbought territory where there is much more buying pressure than selling pressure.

What’s Next For DraftKings?

Bullish traders would like to see the stock be able to break above resistance and move higher. Bulls are then looking for the stock to hold above this level while consolidating for a potential next leg up.

Bears would like to see the stock be unable to cross the resistance level and start heading back lower. Bears would then like to see the stock fall below the moving averages and fall below the possible support level for a change in sentiment and trend.