What's going on moon gang, let's do a quick technical breakdown of two of my favorite gambling: songs, pen, national p, e n n and draftkings ticker symbol, dkng. Let's kick things off with pen, because i think it's in a pretty tech, interesting technical situation, uh pen right now is trading at 119. Over the past week it is down 0.7.8, but from the start of 21 2021. Until now, it is up 37.5, which is very, very interesting on the screen.

Now we have levels of technical support and resistance. When i say support, i just mean areas that it's bounced off of resistance is areas that it's been rejected by just so you know, the current all-time high on pen is right here at 129. On the bottom, we have my favorite technical indicator, which is the relative strength index, also known as the rsi. Basically, it maps out bullish momentum against bearish momentum when it gets very high.

That's a lot of bullish momentum when it gets very low. That's a lot of bearish momentum. A lot of people like to use it for reversion plays so anyway, since the start of the year, draftking or um. Excuse me: penn national gaming has been doing very very well at one point: it was uh almost 61 from the start of january and right now, it's up 48, but why i wanted to bring it to your attention.

Well, first of all, you should know that i am bullish on penn national gaming. I view it as more and more of the us opening back up that the stock will do well, but on top of that, it has amazing exposure to the digital media. Brand uh barcelo sports, which is uh with the founder of dave portnoy, seems like whatever he touches does turn the goal. So i'm on it for two separate reasons, and i think it'll just continue to push the stock higher and higher for more of a technical perspective.

Right here we're looking at the daily chart. Previously, it was battling it out at 110 and from there it finally broke out on february. 4Th went up hit a new all-time high of 129. Since then, it's been selling off which gave the rsi down here a chance to cool off, and then it found support at previous resistance.

That is super super common in the world of trading resistance turns into support. Support turns into resistance, so right now why i like it is basically the risk reward is pretty favorable. You can use 110 as your risk, which is about eight nine dollars away, and then your reward is all the way up to 129 and, of course, if there's enough bullish, follow-through it could break through, which would then optimize your reward. Let's take a quick look at the 30-minute chart uh, so it has the same levels of support and resistance.

Once again, the rsi is at the bottom, but following this nice push from 100 to 110 all the way up to 129. There was a sell-off, and here we saw that there was a lot of bearish momentum uh in pen and since then, it bounced at 110 and we're seeing the bulls finally step back in. So what i'll be looking for in pen is for 110 to hold eventually make its way back up to 129, and of course, after that, i will be looking for a nice technical bullish breakout. On the other hand, we do have the online sports bending company draftkings kind of a similar situation, so here we can see that back in october of 2020, draftkings was rejected right at 64.

from there it sold off found support at 35. Once again. This is why we do technical analysis. It's just so important.

They bounce off of 35 back in september then, once again in november, price levels that are important in the past tend to be important in the future um. Then it came up rejected right here at 56 and then i got in actually myself at 45.. I don't have a position in pen, but i do have a position in draftkings. I am looking to create a new position pen very, very shortly so anyway.

The reason i knew to watch 45 was because it was rejected here once again. Resistance loves to become support after bouncing off of 45 right when i got in it did struggle a bit at 56, where it struggled twice before and then from there. It shot up to 64, which is now acting as resistance, not that big of a surprise. So what i'm looking for in draftkings is for it to either pull an early u-turn or to pull a u-turn right at 56, test 64 for a third time and then break out.

So basically this is a classic cup and handle pattern. So here's the cup from 64 down to 35 all the way back up to 64 and then we're looking for a handle to be formed. Basically, we're just looking for it to come down, create a new higher low and then on the next test of 64 to break out cup and handles are very, very common technical patterns, you're, going to see them a lot and they're, typically very, very bullish. Obviously, no technical indicator or patterns ever ever going to be perfect, but i do like the odds of this situation overall right now as i'm making.

This draftkings is trading at 61., it's down 4.4 on the week, but from the start of 2021. Until now, it's up a very, very respectable 31. Let's quickly switch over to the 30 minute chart just so we can see what's going on there. So after hitting this high at 64 that double rejection top, we have been coming down and trading at 61, but overall, the pattern of it is higher highs, higher lows, which is definitively bullish so, like i said, if we go out far enough, we'll see that coupling Handle pattern, but i'm looking for it to put in a new higher low, which will be the base of the handle and then i'm looking for, follow through and then i think the stock will really really run if and most likely when it can break out of 64.60, so definitely put pen and draft kings on your watch list, especially if you like these gambling socks, because to me um.

I think they have a very bright future, but i would love to know your thoughts on both of these stocks. Let me know if you're bullish bearish, let me know if you think i'm missing something personally, i'm bullish, but let's wait and see how all this can play out. Let me know your thoughts in a comment below you.