The VoSI VooDoo ReportOffbeat Ideas and Commentary from the Depths of Gil's Trading NotesFollowing up on my weekend piece, note that
DraftKings (DKNG) has indeed rallied over the past two days, despite the weak general market. The chart below shows a nice move of about 10% off yesterday's lows. You will also notice that the neon green volume bar is projecting volume high enough to trigger a pocket pivot at the 50-day expential moving average.
On an orthodox daily chart we can see that
DraftKings (DKNG) has pushed right into 50-day
simple moving average resistance as it posts a potential pocket pivot at the 10-dma and 20-dema. The difference is meaningful here, and how this plays out may be a function of where the market goes as the indexes remain weak. But you get the idea of how my custom VPA U&R Chart View on HGS Investor Software above can come in handy when an orthodox chart is not showing anything actionable. As I noted over the weekend, based on the action shown above, it was actionable as a long entry on Tuesday morning when the market opened after a long weekend.
This is one way that I try to gain an edge over the crowd that is looking at an orthodox chart. It will be interesting now to see whether it holds up as a pocket pivot off the 10-dma and through the 20-dema on the regular chart below or whether the 50-dma comes into play as shortable resistance.
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