Today we will take a look at DKNG.
The first thing to mention is that the price has reached a significant level composed of a support and a cloned trendline of the current descending movement or corrective movement.
From here, we can see an inner descending trendline inside the correction (yellow line). That trendline is really important to provide us with information about a possible change in trend.
The main thing I'm looking for before confirming a change in trend is the next sequence.
-Breakout of the yellow trendline
-After that, I want to see a correction with similar proportions as the red line I draw. That's the main trading opportunity towards the bullish target
IF that correction happens, developing setups on its breakout may be a good setup with a risk to reward ratio higher than 2. However, at the moment, that's far from happening.
The last element of this analysis is: What happens if the price keeps falling? Then we should pay attention to the next support level at 11.00 as a possible target.
Thanks for reading! Feel free to share your view in the comments.
The first thing to mention is that the price has reached a significant level composed of a support and a cloned trendline of the current descending movement or corrective movement.
From here, we can see an inner descending trendline inside the correction (yellow line). That trendline is really important to provide us with information about a possible change in trend.
The main thing I'm looking for before confirming a change in trend is the next sequence.
-Breakout of the yellow trendline
-After that, I want to see a correction with similar proportions as the red line I draw. That's the main trading opportunity towards the bullish target
IF that correction happens, developing setups on its breakout may be a good setup with a risk to reward ratio higher than 2. However, at the moment, that's far from happening.
The last element of this analysis is: What happens if the price keeps falling? Then we should pay attention to the next support level at 11.00 as a possible target.
Thanks for reading! Feel free to share your view in the comments.