DraftKings Jumps 4.93% On Heavy Volume As Technicals Flash Bullish Signals

DraftKings (DKNG) surged 4.93% to $45.75 in the latest session, with notable volume expansion signaling strong bullish conviction. The following technical analysis evaluates this move across multiple frameworks.
Candlestick Theory
The stock formed a robust bullish candle closing near its session high of $45.79, decisively reversing the prior two sessions’ bearish candles. This created a bullish engulfing pattern near the $43.11-$43.45 support zone established on July 21-22. Immediate resistance remains the year-to-date high of $45.79. Sustained closes above this level could trigger further upside, while failure may test the swing low support of $43.11.
Moving Average Theory
DKNG trades comfortably above all key moving averages: 50-day ($42.50), 100-day ($40.80), and 200-day ($38.20), confirming a strong long-term uptrend. The current price maintains significant separation from these averages, with the 50-DMA acting as dynamic support. The Golden Cross formation (50-DMA above 200-DMA) remains intact, reinforcing bullish structure despite recent consolidation.
MACD & KDJ Indicators
MACD shows bullish momentum with the histogram expanding positively and the signal line holding above zero – a sign of accelerating upside potential. However, KDJ presents overbought conditions with the K-line at 85 and D-line at 78, diverging from MACD’s strength. While momentum persists, KDJ suggests increased near-term pullback risk at these elevated levels.
Bollinger Bands
Price is testing the upper Bollinger Band (~$46.20) following a band expansion, reflecting heightened volatility. This breakout attempt occurs after several weeks of consolidation within the bands, which typically precedes directional moves. A confirmed close above the upper band would signal exceptional strength, though mean-reversion risk intensifies near this threshold.
Volume-Price Relationship
The 18.77M shares traded during the 4.93% surge represent a 140% volume increase versus the 30-day average, validating bullish conviction. Volume has consistently expanded on up days throughout July, including the July 10th breakout (10.7M shares on 4.14% gain), confirming institutional accumulation. This volume profile supports continuation potential.
Relative Strength Index (RSI)
The 14-day RSI at 64 remains below overbought territory (70 threshold) despite the recent surge, leaving room for additional upside. This neutral reading diverges from KDJ’s overbought signal, but aligns with MACD’s positive momentum. Traders should monitor for RSI crossing 70, which could indicate near-term exhaustion.
Fibonacci Retracement
Using the August 2024 low ($29.29) and February 2025 high ($53.61), key retracement levels are $47.87 (23.6%), $44.32 (38.2%) and $41.45 (50%). The current breakout above $44.32 has cleared the 38.2% resistance, targeting $47.87 next. The 50% level provided strong support during the June pullback, creating confluence with the 100-DMA.
Multiple confluences support the bullish case: volume confirms price breakout, moving averages maintain bullish alignment, and Fibonacci support holds. The main divergence appears between KDJ’s overbought signal and MACD/RSI readings, suggesting potential near-term consolidation despite structural strength. The $45.79-$47.87 resistance zone requires close monitoring, as a decisive breakthrough could signal continuation toward $50 psychological resistance.