Our previous post on DraftKings (dated August 5th, 2022) captured the powerful move of DKNG through its best respected moving average resistance lines, that registered in September 2021.
The past week showed this was a genuinely powerful breakout move; DKNG continued to trade up and closed the week at $20.67, which is 15.09% higher that the previous week’s close, and 40.33% higher than the price represented by the 17-week EMA wick resistance line on the week of the break ($14.73 at the time).
The visual is no less than spectacular:
Zooming in:
Naturally, the moving average resistance lines seen in the charts above are no longer respected. They are history. However, breaking them was the queue to take action for the long side.