Draftkings $DKNG In Strong Uptrend On Massachusetts’ New Sports Betting Law

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Draftkings $DKNG stock continues in a strong uptrend as of August 14, 2022, in the wake of Massachusetts’ new sports betting law.

Massachusetts Passes New Sports Betting Law

Gov. Charlie Baker signed a bill to legalize sports betting on August 10, 2022, officially joining a wave of states that moved to allow wagering on everything from the Super Bowl to college athletics after the Supreme Court struck down a federal ban in 2018. The new law makes Massachusetts the 36th state in the U.S. to legalize sports betting.

Bullish Option Flow Detected In Draftkings $DKNG Stock

Guerilla Stock Trading has detected bullish option flow in Draftkings’ $DKNG stock.

Dkng Option Flow

Make sure to review this lesson on option flow so that you understand the image above.

Whales bought the October 21, 2022, $25 strike call option above the asking price. That is very bullish because someone wanted to get into the trade quickly and didn’t mind paying above the price for that privilege. The volume and open interest have exploded higher in this call contract.

Dkng Call Option

Dark Pool Activity Detected In Draftkings $DKNG Stock

Guerilla Stock Trading has detected dark pool activity in Draftkings’ $DKNG stock. The price action following the dark pool prints suggests it was buy orders coming off dark pools.

Dkng Dark Pool Activity

Make sure to review this lesson on dark pool trading so that you understand the chart above.

DraftKings price target lowered to $30 at Morgan Stanley after Q2 beat

On August 8, 2022, Morgan Stanley analyst Ed Young lowered the firm’s price target on DraftKings to $30 from $31. He kept an Overweight rating on the shares after the company’s Q2 revenues and EBITDA beat his estimates by 7% and 35%, respectively. Management appears focused on narrowing losses, lowering his FY22 EBITDA losses estimate by 8%, telling investors that the strong quarter gives him more confidence in DraftKings’ execution.

📺 Investors Betting on DraftKings $DKNG

Draftkings $DKNG Chart

Draftkings $DKNG stock is in a weak technical uptrend. The market is in highly overbought territory, likely causing some profit taking or trend reversal. The stock confirmed a downtrend channel breakout in early August 2022. On a macro-economic level, consumer discretionary stocks like Draftkings will have a hard time as the recession progresses because people will pull back spending on discretionary items like sports betting. The chart appears to show a classic turnaround pattern.

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