Leading online fantasy sports and gaming company, Draftkings Inc (DKNG), has been falling sharply over the past couple of weeks. The popular stock made a recent high pivot on September 8th, 2021 at $64.58 a share. Since that minor peak, the stock has fallen to $51.57 a share this morning. There is some short term support here for Draftkings stock around this level as it is the 100-day moving average. So far, this level has held up as the stock is being defended in this area. Yesterday, Draftkings (DKNG) announced that they were going to acquire Entain plc for $20 billion in stock and cash. Usually, when a company makes a major purchase of another company that stock will drop in the near term.
The next major support level for Draftking Inc (DKNG) stock will be around the $45.00 level. This important support area is where the was defended and staged a major pivot reverse to the upside back in mid-July 2021. Often, major reversals like this will become excellent support areas when tested. This is a very solid area to take a long side trade in Draftking inc (DKNG) stock when tested.
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