DraftKings Inc. stock price has witnessed strong selling pressure in the last two intraday sessions. The stock price fell more than 6.93% in the period; indicating a heavy short selling from the upper levels.
Moreover, the DKNG stock still trades in the bullish territory in the long term. The stock price has strong support near the $25 level and the presence of 200-EMA near the level makes it a strong demand zone. Looking over some past data, the stock has been bullish for the last two quarters and has added 87% return to the portfolio of DKNG investors
However, the short-term trend seems to be a bit confusing and has turned volatile. The price has entered a correction phase and forms a descending triangle pattern over the daily chart.
The analysts estimate that the stock price might remain in the correction phase until it is maintained inside the triangle. The breakout or breakdown of the triangle pattern might decide the next trend. Moreover, the earning days are near, so that might be a crucial time for the investors. The DKNG stock price may be clear with a trend post the results.
The Wall Street analysts are expecting the company to deliver a revenue of $683.92 Million and expect earnings of negative $0.701 Million. The outperforming results might attract more investors and the stock price may experience a hike.
DraftKings stock derivatives data analysis states that the current implied volatility in the market is 65.76% with an increment of 2.88% in the last trading session. The at-the-money strike price has 859 open contracts on the PUT side and 456 open contracts on the CALL side indicating the dominance of sellers at the CMP.
DraftKings Stock Price Forecast For 2023
The average analyst price target for DraftKings stock in 2023 is $36.20, which represents a potential upside of 26.80% from the current price. However, there is a wide range of analyst price targets from $22.50 to $44.00.
The most optimistic analysts believe that DraftKings stock could reach $44.00 in 2023 indicating an upside potential of 54.12% if the online gaming and entertainment industry grows strongly.
Technical Indicators Signal An Indecisive Trend In Short-Term
The overall technical indicators including RSI and MACD opinion rating for the DKNG stock is a 48% “sell” with the weakest short-term outlook on maintaining the current direction.
Conclusion
DraftKings stock is in a correction phase after a strong rally in the last two quarters. The stock price is forming a descending triangle pattern on the daily chart and may break out or break down depending on the earnings results.
The analysts expect a revenue of $683.92 Million and a loss of -$0.701 Million. The average analyst price target is $36.20, with a range of $22.50 to $44.00. The stock has strong support near the $25 level and the 200-EMA.
Technical Levels
- Support Levels: $27.79 and $25.45
- Resistance Levels: $30.72 and $32.76
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/16/draftkings-stock-may-resume-bullishness-post-the-earnings-analysts/