DraftKings Inc., DKNG stock may reach the $50 recovery level if it follows through the plan according to financial analysts. DKNG shares are currently trying to bounce back from the $25.45 support zone. Now DKNG is preparing for a breakout as buyers may fuel the stock to skyrocket. Meanwhile, the price of DKNG stock could sustain near the $32.50 mark in the distribution phase but failed multiple times.
DraftKings stock needs to prepare for its breakout from primary resistance level at $29.37 and then it may follow an upside trend to reach the $32.50 level. At that time buyers must exceed the accumulation rate in order to fuel DKNG shares to skyrocket and register its breakout from the distribution phase.
DKNG stock price was at $26.57 and has gained 0.76% of its market capitalization during Friday’s trading session. However, trading volume can be seen below average and needs to grow in favor of buyers. Analysts believe that DKNG share price must continue the upside trend on Monday’s trading session for the stock to maintain its recovery towards the primary resistance.
When Will DKNG Stock Reach $50? – The Execution
DKNG stock price had gained from $10.72 support zone in January 2023 and reached the distribution phase at $32.50 in August 2023. Now DKNG may trace back its recovery path towards the upper level after breaking out of the primary resistance level of $29.37 and then march towards the $32.50. However, DKNG shares need to gain strong positive momentum to reach the $50 mark.
DKNG shares are currently attempting to hold at the 100-day DMA in order to maintain their position above the 200-day DMA and achieve the 20 and 50-EMAs. The price of DraftKings’ shares dropped by about 3.52% in a week and 14.79% in a month. DKNG did, however, succeed in gaining 10.66% during the last three months and 32.78% over the past six. Additionally, DraftKings stock price increased by about 127.87% year to date. This affirms the expectation that a maximum recovery for DKNG shares could take place in 2023.
Technical indicators suggest DKNG stock is sustaining. Relative strength index (RSI) and moving average convergence divergence (MACD) both confirm that DKNG stock is trying to adapt to the upside trend.
RSI was at 38 and is moving towards neutrality. However, the MACD line is still below the signal line after a negative crossover. Investors in DraftKings Inc. (NASDAQ: DKNG) needs to wait until the DKNG stock price approaches the primary resistance to reach the secondary resistance at $37.50.
Summary
Financial analysts predict that if DraftKings Inc., DKNG stock executes the strategy, it might return to $50. The stock of DraftKings must be ready to break through its main resistance level at $29.37, after which it may continue on an upward trend to reach the $32.50 level. However, for DKNG shares to cross the $50 threshold, a significant upswing must be maintained. Technical indications point to to consolidation.
Technical Levels
Support Levels: $25.45 and $24.25
Resistance Levels: $29.37 and $37.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/19/draftkings-inc-nasdaq-dkng-will-dkng-stock-jump-to-50/