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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