DKNG stock price surged 7% ahead of Earnings

DraftKings Stock price is attempting to break 8 month high at $21.45.
DKNG stock price above 200 days EMA and displayed a golden crossover.
Draftkings Inc (NASDAQ: DKNG) will release its subsequent earnings on May 4, 2023.

DraftKings’ stock price gained 8% approximately monthly and formed a bullish continuation pattern. DKNG stock performed well in the past few months and attempted to break the 8 months high at $21.45. However, the confirmation of the breakout is awaited.

DraftKings stock price is sustaining above 50, and the 200-day EMA showcases positional trend has reversed upward. Recently, it displayed a golden crossover confirming the uptrend, and buyers seem more active than sellers.

DraftKings stock price closed the previous session at $20.92 with an intraday rise of 7.34%, and market capitalization stands at $9.66 Billion. DraftKings Inc (NASDAQ: DKNG) is expected to release next quarter’s earnings on May 4, 2023. Market analysts estimated the EPS of -$0.844 and revenue of $691.51 million. If companies beat the estimates, we might see upward momentum continue in the coming months.

At the mid of February, DraftKings Inc reported the fourth quarter earnings, which met the estimates, and prices shot up 15% on a single day. The upward momentum halted near $21.50, and prices faced sharp rejection from the supply zone.

Will DraftKings stock price rally before earnings?

NASDAQ: DKNG daily chart by TradingView

DraftKings Stock price witnessed minor profit booking, and it corrected 20% approx from the recent high. DKNG stock price took support at $17.00 and began to consolidate in a narrow range.

In the previous session, the buying volume of DKNG stock increased, and prices also gained positive momentum. It shows investors are turning bullish, and some genuine buyers have taken a long position ahead of quarterly earnings.

The technical analysis suggests DraftKings stock price is in bulls grip, and more rally is possible before the earrings. If buyers break out of $21.50, we may see a 15% upside in a short period, which will take the price to $25.00. On the other hand, if prices got rejected, it might retrace downward to test the EMAs.

DKNG stock turning bullish on multiple timeframes

DKNG stock price rise by 9% and formed a large-size bullish candle on a weekly timeframe. DraftKings stock seems to be turning bullish on multiple time frames, increasing the probability of a breakout. Technical indicators like MACD generated a positive crossover and the histogram bar rise. It indicates bullish momentum to continue for some more time. The RSI at 68, sloping upward, denotes the strength of bulls, and prices are near the overbought territory.

Conclusion

DraftKings Stock price surged 7% on a single day ahead of quarterly earnings. It indicates market participants are expecting that company might meet the estimates. The technical analysis suggests DKNG stock price is in bull’s grip and more rally is possible. DraftKings stock will pick up momentum if buyers break the 8 months high at $21.45. However, if it gets rejected, the price will retrace to test the EMA.

Technical levels

Resistance levels: $21.50 and $25.00

Support levels: $16.00 and $10.71

Disclaimer

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