Draft Kings Is Dropping, Here’s The Bet

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Oct 14, 2020 at 1:26 PM EDT

The next major support level for the stock will be around the $42.00 level. This support area has a major retrace level from the July 2020 low to the recent October top.

Leading online sports gaming stock, Draftkings Inc (DKNG), has been under pressure since October 2nd, 2020. At that time, the popular sports gaming stock traded as high as $64.19 a share. Since that pivot top in the chart, the stock has declined down to the $49.00 level. Traders should note that the stock is now forming a bearish consolidation pattern and this could lead to further downside in the near term.

The next major support level for the stock will be around the $42.00 level. This support area has a major retrace level from the July 2020 low to the recent October top. There is also a key breakout level from September 14, 2020. Often, when a stock retests prior breakout levels they will be defended by the institutional crowd. I will be looking at a longside trade around this major daily chart support level in the stock.

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