Signal Says Buy The Dip On DraftKing’s Stock

The shares of sports betting company DraftKings (DKNG) were last seen 3.4% higher at $28.16, as part of the broader tech sector rally today. Today’s climb could be the beginning of a rebound, given the equity’s recent placement near a historically bullish trendline.

Specifically, DKNG in the last week pulled back to its 80-day moving average after spending a significant period of time above it. According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, five similar signals occurred during the past three years, with DraftKings stock notching a 14.6% one-month gain 80% of the time. From its current perch, a similar move would put the equity back near its Aug. 4, year-to-date high of $34.49