DKNG Showing Strength DKNG is at a possible Macro-Higher Low putting in a 4h pinbar with a small hourly flag. Will be a good stock to keep an eye on this week for potential buy opportunitites.
0ABA trade ideas
Draftkings Earnings Preview and Analysis DraftKings ( NASDAQ:DKNG ), a daily fantasy sports contest and sports betting company, reported a 53% year-over-year revenue growth in Q1 2024. The company's performance was attributed to healthy revenue growth and a scaled fixed cost structure, which allowed for the rapid improvement of Adjusted EBITDA. The company successfully launched its online sportsbook in Vermont and North Carolina with efficient customer acquisition, and its platform and overall customer experience are improving, leading to excellent customer retention and participation across sports and games.
DraftKings increased its fiscal year 2024 revenue guidance to $4.9 billion from $4.775 billion and the midpoint of its Adjusted EBITDA guidance to $500 million from $460. The company's structural sportsbook hold percentage also exceeded expectations, reaching 9.8%, a significant increase from the previous year. However, DraftKings reported a loss of 30 cents per share, an improvement from 87 cents per share the previous year.
Executives stressed the company's "unbelievably efficient" first quarter and noted a 40% year-over-year decrease in customer acquisition costs (CAC) in April. CEO Jason D. Robins highlighted the company's focus on proprietary technology solutions, including significant advancements in sportsbook offerings and the expansion of its iGaming portfolio with new, unique titles.
Robins also highlighted the use of artificial intelligence (AI) to improve product efficiency and customer experience. AI initiatives include modeling and detecting signs of problem gaming, allowing the player intervention team to properly flag issues for investigation. However, there was little mention of payments and payouts during the call, as less than half of gamers now have access to instant payouts.
In summary, DraftKings' Q1 2024 revenue growth was driven by efficient customer acquisition, product innovation, and a focus on customer-centricity. The company's stock price remains relatively unchanged, but it has seen a significant increase in monthly unique players and a focus on responsible gaming initiatives.
Technical Analysis
Despite a positive earnings beat, using Elliott Wave Theory, DraftKings stock ( NASDAQ:DKNG ) appears to have completed its fifth bullish wave within a bullish divergence pattern. This suggests a potential shift in momentum, with indications of a forthcoming bearish divergence. It's essential to monitor closely for confirmation of this divergence and its implications for future price movement.
However, the technical indicators remain constant without any clear-cut. The stock has a Relative Strength Index (RSI) of 50.83.
DraftKings Inc. (DKNG) Technical Analysis ReportThis analysis of DraftKings Inc. (NASDAQ: DKNG) provides an in-depth examination of the stock’s recent trading patterns, supported by various technical indicators and market data. We aim to offer speculative price targets and recommended trading strategies, suitable for both experienced traders and those new to the stock market. We will cover key aspects such as price movements, volume analysis, and oscillators, concluding with specific trading recommendations.
DraftKings Inc. has shown a fluctuating trading pattern over recent periods, demonstrating a dynamic interplay between bullish and bearish sentiment. As of the latest close, DKNG stands at $42.17, showing a notable decline from its recent high, reflecting a 2.00% decrease in the latest trading session.
The 10-day Simple Moving Average (SMA) currently exhibits a buy signal at $41.83, suggesting some support at this level.
Conversely, the Exponential Moving Average (EMA) readings for 20-day and 50-day are positioned at $42.72 and $42.69, respectively, showing sell signals. This suggests short-term downward pressure on the price.
Notably, longer-term EMAs such as the 200-day EMA indicate a buy signal at $36.51, suggesting a stronger base at lower price levels.
The Relative Strength Index (RSI) at 47.04 indicates a neutral market condition, neither overbought nor oversold.
The MACD oscillator points to a buy with a current reading of -0.53, indicating potential upward momentum.
The Momentum oscillator at 1.57 and the Stochastic RSI also suggest bullish signals, indicating possible short-term upward price movements.
The On-Balance Volume (OBV) shows an upward trend with a reading of 152.017 million, suggesting strong buying pressure and potential accumulation by investors.
Trading volume has been robust, supporting the observed price movements and lending credibility to the strength of current price levels.
Price Targets and Trading Recommendations:
Given the mixed signals from both the moving averages and oscillators, a cautious approach is advisable. However, speculative bullish sentiment could target a short-term price of $45.50, close to recent highs. Conversely, bearish pressure could see the stock testing support around the $39.00 mark.
To Long: Consider going long if the price sustains above the 10-day SMA of $41.83, with a stop loss just below at $40.50, targeting a move towards $45.50.
To Short: A short position could be considered if DKNG falls below the $40.00 support level, with a stop loss at $41.00, aiming for a target of $37.00.
DraftKings presents a complex but opportunistic scenario for traders. The mix of bullish indicators and support levels suggests that while cautious, there is potential for both upward and downward movements depending on market sentiment and emerging market conditions. As always, traders should ensure they are managing risk appropriately and considering the broader market context in their decision-making process.
DKNG Down?NASDAQ:DKNG If you trade: chart patterns, fibonacci levels, or divergences, you see it. I see it. Don't miss it. Let the trend break and enter on a retest. With earnings coming up, this play could be big.
$DKNG Might check back the trendlineNASDAQ:DKNG It appears that it might check back the trendline.
The earnings report will determine if it bounces from the trendline or breaks through it. 👀
Watch fib lines for potential support areas.
A Good Bet?
NASDAQ:DKNG
Enter at current price of $48.68 or wait for the dip before buying ( around $48.37) and hold for this to cross $49.69, confirmation towards $50.12.
Possible retracement due to investors selling positions at price target $48.82
Draft Kings PullbackRising Wedge Pattern is at the top of the structure for a third time, and was swiftly rejected from the higher end of the $48 range. Looking for a drawback to around $27.
DKNG - LONG (1h)(1h timeframe)
DETAILS: at the 1h timeframe the price is inside a tunnel. (we have a 3 touches on every line)
after a strong breakout (big bullish candle with strong volume) the price did a retest back to the resistance line of the tunnel.
we can see how the price tried to return back down and got affected well by a strong support area and the ema 200. the candle responded well to the area and the ema (we can see it from the big bullish candle that came also with a strong volume).
I put a 3 strong areas (2 resistance area the upper ones and 1 support area the lower one)
on the chart and we can see how every time that the price touched those areas it responded well.
The current candle is bearish for now (closed as a spining top), waiting to see to where the price is headed.
DKNG - 3rd Wave in progress If DKNG can break and hold 40 level, it can continue its momentum to the upside.
Entry- 40
Stop loss- 32
There is a gap below, if it pulls back to fill the gap around 35, will add more.
Target #1 53
Target #2 60
DKNG 2024-03-17 looks bullishNASDAQ:DKNG Looks pretty bullish
- consolidate around SMA25 recently.
- relative strength is better than NADAQ in general
- can enter with small stoploss 3-5% below the entry price.
DKNG Draft Kings Example of Documenting Your TradesThis simple Line Chart Depicts using the facilities in Trading View to Diarise one's decisions.
This is equally important for both Profitable and Losing Trades, and will help one decide to add or reduce ones position.
The Current Market could go both ways, so if in Profit - set a reasonable Stop Loss to Persevere your Capital.
Trust all are Winners.
Regards Graham.
DKNG - DraftKings - All Ships Rise with the TideIf you use DraftKings, you might want to add DraftKings to your watchlist. DraftKings has been pushing up for several months. Price is less than 100% away from all-time highs. Those who buy and hold or use LEAPS options know what that could mean in a portfolio. This is an 'All Ships Rise with the Tide' technical analysis. Anyone else looking at DraftKings?
DraftKings (DKNG) Stock Shows Resilience Despite Mixed Q4 ResultDraftKings ( NASDAQ:DKNG ), the Boston-based sports betting and iGaming company, is making waves in the market once again, showing remarkable resilience in the face of mixed fourth-quarter results and a groundbreaking $750 million acquisition of Jackpocket, a leading lottery app in the U.S.
Despite the initial market reaction, which saw NASDAQ:DKNG stock fluctuate after its Q4 earnings report, analysts are bullish on the company's long-term prospects. Here's why investors should pay attention to DraftKings' strategic moves and robust growth projections:
Record Revenue and Growing User Base: Despite a slight miss on earnings estimates, DraftKings ( NASDAQ:DKNG ) reported record revenue of $1.23 billion for Q4, marking a 43% increase year-over-year. The company also saw a significant uptick in its Monthly Unique Players (MUPs), reaching an average of 3.5 million paying customers. This growth reflects DraftKings' successful expansion efforts and strong customer acquisition strategies.
Expansion into New Markets: DraftKings ( NASDAQ:DKNG ) continues to expand its footprint across the United States, offering live mobile sports betting in 24 states and iGaming products in five states. With ongoing partnerships and agreements, including the recent launch in Vermont and a forthcoming operation in North Carolina in partnership with NASCAR, DraftKings ( NASDAQ:DKNG ) is well-positioned to capitalize on the growing legal sports betting market.
Strategic Acquisition of Jackpocket: The announcement of DraftKings' acquisition of Jackpocket underscores the company's commitment to diversifying its offerings and tapping into new revenue streams. With the potential to drive significant incremental revenue in the coming years, this acquisition aligns with DraftKings' ( NASDAQ:DKNG ) growth strategy and strengthens its position in the competitive gaming industry.
Partnerships for Continued Growth: DraftKings' ( NASDAQ:DKNG ) partnership with Barstool Sports, a prominent sports and pop culture media company, further solidifies its presence in the sports betting landscape. While financial terms were not disclosed, the collaboration is expected to enhance DraftKings' marketing efforts and customer engagement, providing additional avenues for revenue generation.
Positive Price Momentum: Despite trading near the top of its 52-week range, DKNG stock continues to exhibit upward momentum, indicating investor confidence in the company's future prospects. With strong support levels and a favorable technical outlook, DraftKings ( NASDAQ:DKNG ) remains an attractive investment opportunity for those bullish on the gaming and sports betting sector.
In conclusion, DraftKings' ( NASDAQ:DKNG ) recent performance and strategic initiatives demonstrate its resilience and potential for long-term growth. As the legal sports betting market continues to evolve and expand, DraftKings ( NASDAQ:DKNG ) is well-positioned to capitalize on emerging opportunities and deliver value to its shareholders.
DraftKings Shows Resilience Amidst NFL WoesOverview
DraftKings ( NASDAQ:DKNG ), the renowned sports betting company, recently unveiled its fourth-quarter results, showcasing a commendable 44% growth in revenue despite facing challenges from NFL outcomes that fell short of expectations. While the figures slightly missed Wall Street estimates, the company's CEO, Jason Robins, remains optimistic about DraftKings' ( NASDAQ:DKNG ) trajectory, citing robust customer experiences and strategic initiatives propelling their growth.
Financial Performance Analysis
In the wake of the NFL's unfavorable outcomes, DraftKings ( NASDAQ:DKNG ) saw a dip in performance, reflected in the reported losses per share of 10 cents compared to an expected profit of 8 cents. However, Robins attributed this setback to the inherent volatility of sports betting, emphasizing the cyclical nature of the industry where occasional downturns are inevitable.
Despite the hurdles, DraftKings ( NASDAQ:DKNG ) demonstrated resilience by reporting a significant decrease in net losses, from $242.7 million to $44.6 million year-over-year. Losses per share also improved substantially, showcasing the company's ability to adapt and navigate through challenges effectively.
User Engagement and Strategic Initiatives
One of the key highlights of DraftKings' ( NASDAQ:DKNG ) performance was the impressive increase in monthly unique payers, soaring by 37% compared to the same period in the previous year. This surge in user engagement underscores the company's growing appeal among sports enthusiasts, solidifying its position as a leading player in the sports betting market.
Moreover, DraftKings' ( NASDAQ:DKNG ) strategic moves further bolster its growth trajectory, evident in the recent announcement of plans to acquire the lottery app Jackpocket for approximately $750 million. Robins emphasized the strategic significance of this acquisition, highlighting Jackpocket's foothold in the lucrative lottery industry and its potential to tap into a vast audience base.
Future Outlook and Expansion Plans
Looking ahead, DraftKings ( NASDAQ:DKNG ) revised its fiscal year 2024 guidance, projecting a revenue range of $410 million to $510 million, up from the previous guidance of $350 million to $450 million. This upward revision reflects the company's confidence in its growth prospects and its ability to weather short-term challenges.
In addition to its financial performance, DraftKings ( NASDAQ:DKNG ) continues to expand its market reach, recently launching its Sportsbook product in Maine and Vermont, bringing its total to 24 states allowing mobile sports betting. This expansion reflects DraftKings' commitment to providing innovative and accessible betting experiences to customers nationwide.
Conclusion
DraftKings' ( NASDAQ:DKNG ) fourth-quarter performance underscores its resilience amidst market fluctuations, with robust revenue growth and strategic initiatives driving its trajectory forward. As the company continues to innovate and expand its offerings, it remains well-positioned to capitalize on the evolving landscape of sports betting, cementing its status as a dominant player in the industry.
DKNG DraftKings - Super Bowl and Earning soonDKNG DraftKings is one to watch going into earnings and the big Super Boawl weekend. There is a lot of space between the current price and all-time highs for the patient investor. Consider LEAP options as well to accelerate growth with risk management. Keep an eye on DKNG.
DKNG - On the way to go towards 45.5 and 51.5Very good support placed at 39 looking for 45.5 and 51.5
Flag breakout happened at 35.
DKNG: Now Trading +23%Now trading +23% - original idea attached.
DraftKings is an American daily fantasy sports contest and sports betting company. The company allows users to enter daily and weekly fantasy sports–related contests and win money based on individual...
Can DraftKings Overcome Key Technical Levels?Primary Chart : DraftKings Inc. Weekly Price Chart with Fibonacci Levels and Downward Trendline from All-Time Highs
DraftKings Inc., an innovative sports-betting company, has been one of the hottest stocks of this week after it beat earnings expectations and raised revenue guidance. Many are likely chasing the stock's price here without any discipline whatsoever, being driven by fear of missing out and the possibility of untold gains from a former darling of growth investors.
The magenta trendline on the primary chart, which is logarithmically scaled by the way, shows that the downtrend remains intact despite today's powerful rally. This downward trendline could be broken, by the way, if momentum is sustained by bullish seasonality and tailwinds into year end in a pre-election year. But a shorter-term down trendline has been decisively snapped with today's upside push, and this suggests near-term strength for DKNG.
Supplementary Chart A
And DKNG gapped above its key 50-day SMA today as well.
Supplementary Chart B
But this post does not recommend shorting or longing this stock; instead, its purpose is to analyze NASDAQ:DKNG and consider its current position in light of a severe bear market in 2021-2022 and a euphoric bull-market run in 2020-2021. With discipline, some trading profits might be made long or short given this stock's inherent volatility—the stock rose about 15% today and about 25% this week alone. But without risk management, this stock could easily obliterate anyone attempting to gather quick profits on a short-term to intermediate-term time frame.
The stock is extended here after it gapped above key moving averages. It also has reached critical resistance at the .618 Fibonacci retracement after breaking above the 50% retracement on October 31, 2023. The .618 Fibonacci retracement lies at $34.25, a few cents above the high of the week and the day today. A bit of consolidation of today's move may provide traders with a bullish view into the new year (a time frame of about 2 months) a reason to buy the dip.
But caution is warranted into 2024 and 2025—can technological innovation and earnings surprises be enough to sustain this stock? Your comments on this particular question are welcome. There may be room for some debate as macro headwinds cannot prevent rallies like the one seen in equity indices like SP:SPX and some growth stocks. But there is a decent likelihood that macro headwinds may work against DKNG as long as interest rates remain high and inflation does not disappear. The Federal Reserves funds rate is now at 5.25% to 5.50%, a 22-year high. And quick look at the TradingView's Financial overview shows that DKNG has not had positive net income yet. And its financial history is not that long yet: It was founded in 2011, and it has only been public since 2020. So despite the major earnings beat and positive guidance today, DKNG still lost $0.61 per share. Unprofitable growth stocks do not perform as well in high-rate environments.
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Author's Comment: Thank you for reviewing this post and considering its charts and analysis. The author welcomes comments, discussion and debate (respectfully presented) in the comment section. Shared charts are especially helpful to support any opposing or alternative view. This article is intended to present an unbiased, technical view of the security or tradable risk asset discussed.
Please note further that this technical-analysis viewpoint is short-term in nature. This is not a trade recommendation but a technical-analysis overview and commentary with levels to watch for the near term. This technical-analysis viewpoint could change at a moment's notice should price move beyond a level of invalidation. Further, proper risk-management techniques are vital to trading success. And countertrend or mean-reversion trading, e.g., trading a rally in a bear market, is lower probability and is tricky and challenging even for the most experienced traders.
DISCLAIMER: This post contains commentary published solely for educational and informational purposes. This post's content (and any content available through links in this post) and its views do not constitute financial advice or an investment or trading recommendation, and they do not account for readers' personal financial circumstances, or their investing or trading objectives, time frame, and risk tolerance. Readers should perform their own due diligence, and consult a qualified financial adviser or other investment / financial professional before entering any trade, investment or other transaction.
DraftKings can it go Higher? $DKNGWith another year of increased Revenues DraftKings is poised to see higher gains. " In August, DraftKings took the U.S. online gambling lead, according to a new study by prominent research entity Eilers & Krejcik Gaming, capturing 31% of overall gross gaming revenue compared to FanDuel’s 30%. " - frontofficesports.com
$DKNG Shorts - Overextended on buyside I believe we made the high of the week for Draft Kings or at least until previous Thursday's low is taken. Positioning for shorts to swing.
$DKNG - could see further upsideNASDAQ:DKNG DraftKings formed a Cup and Handle base and recently performed a successful check back to the neckline. It also broke out of a flag that could propel the stock further.
Upside targets:
$45
$50
$55
Downside risk:
$32
I post detailed technical analysis of stocks with targets. Don't forget to give me a follow, if you find my analysis helpful.
DKNG 10/13/2023DKNG
Price was in an uptrend from January '23 through July '23.
It then started to move sideways between July '23 and September '23, forming lower highs into the trendline.
The uptrend was finally broken in late September '23/early October '23.
Now, the price finds itself at the resistance level of the previous uptrend and at the downtrend line created by the lower highs observed between July '23 and September '23. Additionally, there is an engulfing candlestick pattern in this area. This serves as my cue to enter a short trade.
Entry: 29.37
Stoploss: 33.56, -14.27%
Target: 20.78, +29.25%, 2.05 RR ratio
