These two gambling stocks are undergoing impressive upside breakouts, according to the charts

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Breaking News: Markets News

Markets,Entertainment,Caesars Entertainment Inc

David Keller breaks down the charts of DraftKings and Flutter.

With former high-flying gambling stocks struggling so far in the fourth quarter, it's tempting to write off the entire group. But a quick review of the charts unveils two online gambling names that have been strong outperformers and feature compelling technical configurations going into December. The S & P 500 is currently sitting about 16% above its August low, and casino operators Caesars Entertainment and MGM Resorts International have given back much of their autumn gains.

pushed above its March high around $225, the stock pulled back to the breakout level and found new support. Earlier this month, a positive earnings beat created an upside gap to a new all-time high above $250. The post-gap performance of Flutter is most impressive, with a "gap and run" pattern where the stock pops higher and then additional buyers create even more upside potential.

has now made a new 12-month relative high, as the strong performance in Q4 has outpaced other gambling stocks as well as the major equity benchmarks. With the S & P 500 and Nasdaq 100 continuing their relentless bullish trends into December, it can be a challenge to identify stocks with the potential to outperform. By focusing on the fundamentals of technical analysis, we can easily identify charts with high percentage setups and strong technical profiles.

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