DraftKings $DKNG stock rose 3.3% on October 7, 2022, when the entire market closed down. The excellent relative strength may be from rumors circulating that DraftKings will soon reveal a deal with ESPN sports.
ESPN, DraftKings close to large new partnership, Bloomberg reports
On October 6, 2022, Bloomberg reported that the new agreement would help ESPN parent Disney capitalize on the growth of sports betting.
DraftKings, ESPN near signing exclusive deal, Action Network reports
DraftKings (DKNG) and Disney’s (DIS) ESPN are near signing an exclusive partnership, Action Network’s Darren Rovell reports, citing sources. ESPN was seeking a partner in hopes of securing $3B over a period of time that would lead to a sportsbook rebranding itself with the ESPN brand, but that’s not the case with this deal, as the agreement is a massive exclusive partnership that will have shows and perhaps odds integrated into game broadcasts, Rovell says. Source: https://www.actionnetwork.com/news/draftkings-espn-partnership
Dark Pool Trades On October 5, 2022
One day before the news was made public that Disney and DraftKings were negotiating a major sports betting agreement, dark pool activity was detected in DraftKings $DKNG stock.
Considering that there has not been any dark pool trades since October 5, 2022, it appears an institutional investor could have been front-running the ESPN and DraftKings’ negotiations news from Bloomberg and Action Network.
Make sure to review this lesson on dark pool trading so that you understand the chart above.
DraftKings stock jumps on potential deal with ESPN
DraftKings $DKNG Stock Technical Analysis
DraftKings $DKNG stock is in a technical weak uptrend. The MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... just went positive on October 7, 2022, but the money flow is still negative. $DKNG stock is trading within a downtrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u.... The stock would need to break above resistance at $19.85 for the trend to be upgraded.
