Finding Bottoms Using Monthly Inside Candles: DKNG

17 ביולי 2023

Now, let's take a look at DKNG.

One of my highest conviction trades this year in January.

In this case, we traded within its March '20 monthly inside range.

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DKNG


We zoom in to see not only did the monthly inside low hold, but we have a massive bull flag breakout.

Add the fact that Massachusetts had an inevitable sports betting approval coming, this became a no brainer A+ setup.

Given at $13-$14.

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We capitalized on DKNG, then rolling it up to a 3/17 22.5c with our target of what?

The March '20 monthly inside resistance of $19.50.

We sold near the top of its first wave into $21, now providing a 50%+ move on underlying since adding to WL in January.

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After a pullback, DKNG reclaimed the breakout of its March '20 inside range $19.50, providing another massive move into $30+ (+50%).

From the time of my WL add in January, this has now provided over 110% upside.

See how breaks of monthly inside ranges provide large moves?

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