(Check out Carter’s worthcharting.com for actionable recommendations and live nightly videos.) On-line sports betting company DraftKings (DKNG) has yet to recoup its losses associated with the stock market’s tariff-related sell-off. DKNG peaked in mid February (same as the S & P 500 Index) and then sold off hard, until ricocheting in early April (same as the S & P 500 Index) but has yet to make new highs (the S & P 500 Index is above its pre-sell-off February peak). Our thinking here is to play DraftKings for a catch-up trade; we believe the stock is headed back to its Feb. 14 high of $53.65. A prospective move to said high would represent a gain of 17% from current levels (DKNG is $45 at the time of this writing). The four (4) identical charts below tell the tale. There are many ways to “draw the lines” and any which way one does draw the lines, the implications are bullish: buy DraftKings. Identical DKNG chart 1 of 4 One way to “draw the lines”… Identical DKNG chart 2 of 4 Another way to “draw the lines”… Identical DKNG chart 3 of 4 Still another way to “draw the lines”… Identical DKNG chart 4 of 4 Yet another way to “draw the lines”… DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Charts suggest this online gambling stock is headed back to a new high, says Carter Worth
