DraftKings Stock Analysis: Key Levels to Watch Ahead of Earnings

DraftKings (NASDAQ: DKNG) closed the last trading session at $43.44 per share, extending its weekly winning streak to seven consecutive weeks. This sustained rally indicates strong bullish momentum, but technical indicators suggest a potential near-term pullback as earnings approach.

Technical Indicators: Bullish or Overbought?

• The Stochastic indicator has now entered overbought territory, signaling that the stock could face short-term pressure. Historically, this has led to temporary pullbacks in DraftKings’ price action.
• On the bullish side, the MACD has turned positive, which could provide support within the $36-$46 range, reinforcing the stock’s current strength.

Key Support & Resistance Levels for DraftKings

With quarterly earnings set for tomorrow, investors are watching whether DraftKings can break above key resistance or face a potential pullback:

Resistance: $44.55 (upper trendline of the wedge). A break above this level could trigger a rally toward $49.55 as buyers step in.

Support: $39 (lower trendline support). A break below this level could lead to further declines toward $35.97, and possibly $35.11 if selling pressure intensifies.

DraftKings Outlook: Can It Extend Its Winning Streak?

With DraftKings stock recovering from last year’s April-July pullback, it now sits at a pivotal point heading into Q1 2025. The upcoming earnings report could be the catalyst for a breakout or a reversal, making these key price levels critical for traders and investors.

Will DraftKings continue its seven-week rally or see a post-earnings correction? Keep an eye on $44.55 resistance and $39 support for market direction.