Here’s your trade on DraftKings ($DKNG) – December 28, 2023
This is Dan Fitzpatrick with FITZ IN FIVE. I want to look at DraftKings ( NASDAQ: DKNG ) here.
If I had been looking at this earlier today I probably would have started a position. It is not really giving you much right now, other than holding the 50. It had been pulling back on some lighter-than-average volume.
Today’s volume was really light, though it’s the week after Christmas, and before New Year’s, so it’s like 4-days of basically doing nothing. So you can’t expect this to be heavier volume But still, I like the way this thing is setting up.
You can see it kind of stair-stepping higher along the 10-week or 50-day moving average here. I like the way the stock is trading, this would be an early entry. What I mean by that is, that what you want to see is a little bit more of a sideways bottom like this. And then finally have it start to move up; that’s, ideally.
A lot of times you don’t get that thing, especially with a stock like this that is pretty choppy and volatile. Anyway, this is what I would like to see, if you are buying this right here, what you are expecting is that the stock is going to do this.
You are expecting that the stock is going to go up right away. I don’t think there is a case for it doing that. I actually feel like it might be drifty a little bit, maybe come down closer to the 50-day moving average before moving higher. It might be a little premature to be buying here, just letting you know.
What I’m going to do tomorrow, basically I’m not going to pay too much attention to something unless I have money on it. Even if it is $35.87; unless I have a stock in my trading account, I have lists and I will keep track of them, but I really watch stuff that my money is riding on.
What I am probably going to do tomorrow is, if the stock pops up above 36.32, 36.35, or something like that, if it pops up above that level, then I will probably put on just a very small position, not a big position at all.
A position that gets me involved but also takes into account that this may drift down a little bit. And if it does, it’s okay because I just have a little small pilot position on it. Just a little number 2 pencil position that I can erase at any time.
That’s what I like here on DraftKings ( NASDAQ: DKNG ) and that would be my suggestion to you.
Free Chart