Why is DraftKings Ripping on a Very Red Day in the Markets?

Draftkings is having a solid green day while the rest of the market is struggling. Why are we seeing buyers flock to DKNG  on a day like today?

The options volume is heavy on the call side. From scanning the near-term contracts looking no farther than a couple months, I could see that most of these calls are being bought. That is slightly bullish from an options order flow standpoint. Here is an example in the chart below.

There have been only a few moderately bullish headlines about DKNG lately. The fact that DKNG will have new revenue streams generated in Vermont could be adding to the bullish sentiment today. I commented on this headline when it was released.

I think the biggest culprit for today's bullishness is a simple technical setup. The charts looked ready for a rebound, and the subindicators are about to flip to bullish territory on the daily candles. Perhaps short-term traders are trying to front run the potential bounce in price action.

There is a very strong resistance level near the $35.00 price point. Personally, I need to see the price climb above this level before I would be confident in any short-term bullishness.

As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.

Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.