When the Price of Draftkings Inc. Class A Common Stock DKNG Talks, People Listen

May 16, 2022, 02:00 am ET, BY Bill- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of Draftkings Inc. Class A Common Stock (NASDAQ: DKNG) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for DKNG can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for DKNG

• Buy DKNG slightly over 8.19 target 17.21 stop loss @ 8.17 Details

The technical summary data tells us to buy DKNG near 8.19 with an upside target of 17.21. This data also tells us to set a stop loss @ 8.17 to protect against excessive loss in case the stock begins to move against the trade. 8.19 is the first level of support below 12.53 , and by rule, any test of support is a buy signal. In this case, support 8.19 would be being tested, so a buy signal would exist.

• Short DKNG under 17.21, target 8.19, stop loss @ 17.26 Details

The technical summary data is suggesting a short of DKNG as it gets near 17.21 with a downside target of 8.19. We should have a stop loss in place at 17.26though. 17.21 is the first level of resistance above 12.53, and by rule, any test of resistance is a short signal. In this case, if resistance 17.21 is being tested, so a short signal would exist.

Swing Trading Plans for DKNG

• Buy DKNG slightly over 12.58, target 14.72, Stop Loss @ 12.54 Details

If 12.58 begins to break higher, the technical summary data tells us to buy DKNG just slightly over 12.58, with an upside target of 14.72. The data also tells us to set a stop loss @ 12.54 in case the stock turns against the trade. 12.58 is the first level of resistance above 12.53, and by rule, any break above resistance is a buy signal. In this case, 12.58, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DKNG near 12.58, target 8.19, Stop Loss @ 12.62. Details

The technical summary data is suggesting a short of DKNG if it tests 12.58 with a downside target of 8.19. We should have a stop loss in place at 12.62 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 12.58, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for DKNG

• Buy DKNG slightly over 12.75, target 14.72, Stop Loss @ 12.72 Details

If 12.75 begins to break higher, the technical summary data tells us to buy DKNG just slightly over 12.75, with an upside target of 14.72. The data also tells us to set a stop loss @ 12.72 in case the stock turns against the trade. 12.75 is the first level of resistance above 12.53, and by rule, any break above resistance is a buy signal. In this case, 12.75, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DKNG near 12.75, target 11.26, Stop Loss @ 12.78. Details

The technical summary data is suggesting a short of DKNG if it tests 12.75 with a downside target of 11.26. We should have a stop loss in place at 12.78 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 12.75, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

DKNG Ratings for May 16:

Term →	Near	Mid	Long
Rating	Weak	Weak	Weak
P1	0	0	8.19
P2	11.26	12.58	17.21
P3	12.75	14.72	25.97

Support and Resistance Plot Chart for DKNG

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