DraftKings is testing a critical level of support: will it explode or explode?

Draftkings Inc. (NASDAQ: DKNG) Stocks traded higher on Monday as retail traders were able to push the stock higher. There doesn’t seem to be any obvious news on the company to explain the price hike, but stocks were all the rage on social media sites throughout the day such as StockTwits.

DraftKings rose 1.99% to $ 44.66 in the last check.

DraftKings Daily Chart Analysis

• The stocks are trading in a side channel and are now testing a key support level where support has already been found.
• The stock is trading below the 50-day moving average (green) and the 200-day moving average (blue), indicating that sentiment for the stock is bearish.
• Each of these moving averages may be a resistance zone going forward.

Key DraftKings Levels to Watch Out for

• The stock is now testing the $ 45 level, this is an area that has been supportive in the past and may continue to be in the future.
• If the stock can hold above the $ 45 level and continue to rise, it may not find a high resistance level until it hits the $ 60 mark, as it was previously a ‘an area of ​​high resistance.
• If the stock is unable to hold above the $ 45 level, it may fall until it reaches the next potential support level very close to the $ 30 mark, as this area has already served as a support.

What’s next for DraftKings?

The bulls would like to see the stock rebound to the $ 45 level and start to rise. The bulls then want to see the stock start forming higher lows and move towards the resistance of $ 60. Eventually, the bulls would like to see the stock break through the $ 60 resistance and consolidate above the level.

Bearish traders would like to see the stock fall and break through the $ 30 support. If the stock manages to break below this support level, it could see a further bearish push. The bears want to see the stock continue to trade below the moving averages to keep the bearish sentiment in the stock intact.