DKNG momentum reversal.Ugly H&S within an uptrend above weekly candle pattern breakout. Will be a nice swing opportunity and for paper handers, can be a 2 day hold for 100%+, trim at or near highs and leave runners after.
D2KN34 trade ideas
I am also bullish on DKNG in near termif market continues to stay strong and consumer spending looks good dkng can continue to build.
Not posting any ideas as advice but rather as accountability for my own read on market
$DKNG Rocky Mountains Ahead?Rocky Mountains is not a real thing, but it was the first term to come to mind when looking at this pattern.
If this plays out, it would take weeks to months before anything comes of it. Simply charting this to reflect back on in the future to see what this pattern reveals. I'm simply playing hidden bullish divergence here, especially considering the fed with today's semi-hawkish tone out in Jackson Hole.
Choppiness with potential to trade highs and lows.
High Volatility = High Premium = High Risk = High Potential Wins = High Potential Losses.
DKNG - potential entry above 26.90DKNG has corrected back to a possible near term resistence-turned-support @ 26.50 - 26.80.
Currently the bullish divergence between it's price and RSI is still intact (will be negated if price dips below its last pivot of 24.95).
I would consider to test a long entry for DKNS if it starts to go above the last candle high of 26.89 with an initial SL just slightly below its last pivot low of 24.95.
As swing trader, I will be trailing my stops on the way up should the trade works out.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
$DKNG - Is the pullback done?NASDAQ:DKNG DraftKings could see a trendline check-back within an uptrend channel. It is currently sitting on the 50-day moving average and a Fibonacci support level.
If the trend line fails to hold and the price falls below $25.60, we could see a further pullback.
The $25.60 area should provide good support.
Watch these price levels for potential support and reversal:
- $25.60 to $26
- $23
- $21.71 (gap close)
I will update the chart when there is a potential reversal.
Possible Cup and Handle on DKNGThe cup has formed over a long period of time and price is coming into an area of resistance ($26 - 27). A pull back to 20 ish would be expected with a larger pull back to half the cup distance.
Not financial advice.
Looking for a break of support for DKNGVolume profile shows area or support.
Watching for support to break at $28 then targeting $26 area
DraftKings to go lower?DKNG met a long monthly down trend after a 250% rally from its lows and closed with what looks like a reversal pattern on the daily chart.
Weekly THV is flat and Red as pricing continued to climb into the trend creating bearish divergence.
Does Draft kings head back to $20 to meet the weekly coral or will it break out and head to $40? Time will tell.
I'm personally shorting this. I explain why in the video. Covering both technical and social confluence and what I look for.
DraftKings DKNG wants to move up
I have been watching this stock for a while and they just had great earnings.
PENN announcement has spooked people but the fundamentals of the stock, price targets all say another thing.
I see a quick return to $30+ following the support line for buying opportunities.
Expectation: $36.00-$36.50 short term
KalaGhazi | DraftkingsShares have been on fire. You want to own this heading into football season. It was upgraded today. The CEO is delivering.
8/7: DKNG Golden Pocket ShortHad a nice call on DKNG earnings last week and now I think a golden pocket short is lining up. Entries around $33 to get us back under $30 seems like a good setup.
$DKNG - Beat earnings, good forecast, boom to the moonClassic text book C&H (cup and handle) formation... in this case we have classic Yin Yang Wave formation. Now its important to pay attention to the larger broader markets of SPY/SPX/QQQ as far as timing goes. There should be some opportunities the next couple weeks to secure a nice position here before this ship really takes off. All time high targets easily reached by December. Long calls $35.00 Strike expiration date January 2024 right now are $3.13 = 200-300% low risk gains.
Earnings watch 8/3/23 post-marketEarnings watch 8/3/23 post-market:
Here's a quarterly view 24hr ext comparison chart with the tickerTracker MFI Oscillator.
DKNG
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WISH
DKNG Earning Pop?I was originally afraid of this but with ER tomorrow and us taking sell-side liquidity, I just see this ready to run into next week. Looking to buy calls on a break of $30.60 or on a pullback to our golden zone. Really like this one and was tracking it since our most recent distribution phase beginning on June 25.
DKNG looks bullish 2nd Aug,2023I am long at CMP here with DKNG and the it looks like it should go up. I will update the analysis shortly.
$DKNG A Winning BetBuilding up momentum since the start of the year, DraftKings Inc. (NASDAQ: DKNG) is currently up more than 140% YTD. With the company expected to release its Q2 earnings on August 4, DKNG stock could be poised for a post earnings run given that it ran 30, 40, and 32% following its last 3 earnings. This might be the case following Q2 earnings thanks to the success of the last NBA Playoffs since it could have led to an increase in placed bets. For this reason, going long on the stock ahead of its upcoming earnings could prove to be a profitable investment considering the company’s potential to beat estimates once again this year.
DKNG Fundamentals
Sports Betting and IGaming
Sports betting and online gambling are the foundations of DKNG’s business and both have been gaining momentum around the US lately. Multiple states are currently trying to pass bills to either legalize sports betting or expand existing gambling legalizations to include online gambling.
Currently, online sports betting is legal and live in 24 states in the US, with DKNG operating in 21 of them, with these 21 states containing more than 42% of the US population. In the case of new states legalizing either sports betting or online gambling, DKNG can leverage its population acquisition rate and gain a huge amount of new customers as it has a 3.4% average adult population acquisition rate 30 days after launch according to its latest Q1 presentation.
Earlier this year, Texas, Minnesota, and Missouri introduced their own bills to legalize sports betting; unfortunately for DKNG, the bill did not pass in any of those states, although the bill came close to passing in Missouri with The House overwhelmingly passing the bill.
That said, North Carolina signed a bill earlier this year to legalize online sports betting, with the expectation that it will launch in the first half of the year. As of 2023, North Carolina has 8 million adults, which means that according to DKNG’s population acquisition 30 days after launch, it could acquire approximately 272 thousand new customers.
On the online gambling front, DKNG is currently operating in five US states and in Ontario, Canada. DKNG was in danger of losing New Jersey since Legal authorization for online casino gambling in New Jersey was set to expire in November of this year. However, Gov. Phil Murphy signed iGaming extension legislation into law on June 30, giving online gambling in the state another five-year term, which means that DKNG can be at ease for another five years before thinking about stopping online gambling operations in New Jersey.
Q2 Outlook
DKNG is expected to release its Q2 earnings on August 4 in which it expects to break even on an adjusted EBITDA basis and to achieve $150 million of positive adjusted EBITDA in Q4 according to its Q1 earnings call. Furthermore, DKNG raised its guidance for the full-year adjusted EBITDA by 21% at the midpoint from negative $400 million to negative $315 million, which is mainly driven by the better-than-expected customer acquisition and retention rate.
The recent NBA playoffs can help DKNG reach its breakeven target since it was the most watched NBA playoffs in five years with an average of 5.47 million viewers, up more than 50% from last year’s average of 3.6 million viewers.
With that in mind, there is a correlation between viewership and sports betting. According to data from the Harris Poll, sports betting has a role in increasing viewership as 86% of sports bettors watch a sports game or event at least once a week. This data is supported by the rise in NFL viewership since the expansion of legal sports betting.
Since the Supreme Court struck down the Federal ban on sports betting in 2018, NFL ratings have risen every year, other than the 2020-21 season which was impacted by the pandemic, and this past season where viewership declined slightly from 17.9 million per game to 16.7 million per game. Despite this, last season’s viewership was significantly higher than before the 2017-2018 season right prior to the Supreme Court’s decision where the average viewership per game was 14.9 million.
This shows that with the growing movement to legalize sports betting, sports viewership could also increase in turn. In this way, it could be safe to assume that an increase in sports betting activity during the last NBA Playoffs could be the result of increasing sports betting activity on the event.
According to its Q1 investor presentation, DKNG improved its revenue per user by 37% YoY from $67 in Q1 2023 due to structural improvement in its sportsbook hold rates as a result of the introduction of in-house same game parlay capabilities in addition to reduced promotional intensity. The same presentation also shows that the company increased its average monthly unique users in Q1 from 2 million to 2.8 million. According to management, this increase in monthly unique players is the result of more people reaching the legal gambling age and people moving into states with legal sports betting.
In that way, DKNG stock could maintain its momentum in the second half of the year with the NFL season set to start in September. The significance of the NFL season’s start cannot be overstated since it is the most popular sport to bet on.
According to data collected in October 2022 by CRG Global, 72% of NFL fans bet weekly. In comparison, 50% of NBA fans bet weekly and this figure further declines to 39% of MLB fans. Based on this, the return of the NFL season could see DKNG achieve significantly better revenues in the second half of the year.
Risks
Despite DKNG’s bullish outlook for the rest of the year, there is a major risk that is severely impacting its profitability prospects which is its high sales and marketing costs. Although the company reduced its sales and marketing costs as a percentage of revenue from 77% in Q1 2022 to 50.5% in Q1 2023, it remains extremely high. With sports betting set to launch in Kentucky, North Carolina, and Vermont either later this year or early next year, the company might have to increase its marketing costs to attract users in these states. In that way, the company’s net losses could increase when sports betting launches in these states despite the potential revenue growth from them.
DKNG Financials
In its Q1 2023 report, DKNG’s assets decreased 7% QoQ from $4 billion to $3.7 billion due to its cash balance declining from $1.3 billion to $1 billion. As for liabilities, DKNG reported a slight increase from $2.71 billion to $2.72 billion where $1.2 billion are current liabilities. In this way, the company has a current ratio of 1.46 indicating that it is in a strong financial position.
In terms of revenues, DKNG reported an 85% YoY increase to $769.6 million from $417.2 million which is due to the company entering new markets and offering more products. Operating costs also increased 3% over the same period from $619.4 million to $637.6 million mainly due to the increase in sales and marketing costs from $321.4 million to $389.1 million. Despite the increase in costs, the company’s impressive revenue growth led to its net loss improving 15% YoY to $397.1 million compared to $467.6 million.
Technical Analysis
DKNG stock’s trend is bullish with the stock trading in an upward channel. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is neutral at 52 and the MACD is approaching a bullish crossover.
As for the fundamentals, DKNG’s upcoming Q2 earnings report on August 4 is a major catalyst for the stock as it ran 30, 40, and 32% following its previous 3 earnings releases. Given the success of the recent NBA Playoffs, it would not be a surprise to see DKNG beat analyst estimates and run in a similar fashion to its previous earnings reports.
With the stock testing its 21 MA support, investors could find the current PPS a good entry point to go long ahead of the company’s Q2 earnings. With this in mind, if DKNG is able to break through its upper trendline, it can continue running to its next resistance at $41.4 – which would be a 30% upside from current levels.
DKNG Forecast
DKNG stock has been gaining momentum since the start of 2023, and it can keep this momentum if it announces positive Q2 earnings. Furthermore, the nationwide push for legalizing sports betting and online gambling can help DKNG enter more markets and realize more customers as more states legalize sports betting which is the foundation of DKNG’s business. For these reasons, DKNG stock is one to keep an eye on at the moment.
$DKNG is back on my radar DKNG was actually my first post and the cup and handle worked out great but now its showing a bullish set up. next leg can go to 32.
DKNGWhat a beauty, rounding bottom, flagging after a 200% move, coiling up waiting for any trigger. Earnings coming up could make or break this name.
Finding Bottoms Using Monthly Inside Candles: DKNGNow, let's take a look at $DKNG.
One of my highest conviction trades this year in January.
In this case, we traded within its March '20 monthly inside range.
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DKNG
We zoom in to see not only did the monthly inside low hold, but we have a massive bull flag breakout.
Add the fact that Massachusetts had an inevitable sports betting approval coming, this became a no brainer A+ setup.
Given at $13-$14.
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We capitalized on NASDAQ:DKNG , then rolling it up to a 3/17 22.5c with our target of what?
The March '20 monthly inside resistance of $19.50.
We sold near the top of its first wave into $21, now providing a 50%+ move on underlying since adding to WL in January.
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After a pullback, NASDAQ:DKNG reclaimed the breakout of its March '20 inside range $19.50, providing another massive move into $30+ (+50%).
From the time of my WL add in January, this has now provided over 110% upside.
See how breaks of monthly inside ranges provide large moves?
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Risk cancellation sample 2Risk cancellation happens when you have an unrealized gain that can cover the risk you set for that particular trade.
It can also be a situation where an open position is on the winning side and just waiting for a trail stop/target profit to be executed.
In those situations, set your stops at breakeven.
Risk cancellation may give you more room to add trades/positions without adding the value at risk of your portfolio.
What's the hype about DRAFTKINGS?- DKNG has been on a massive run so far this year, but I see this coming to halt very soon. On the macro picture this whole rally was just a long W4 that we actually just hit the .382 level. This rally is over and we should see a decline pretty hard in the coming weeks. It is possible we push higher to .5 level but only time will tell. Right now we have hit our target for W4 to be complete and start the W5 downside.
DKNG text book breakout coming soon? 🥶🚀downtrend faze in 2021, consolidation faze 2022-2023, now it looks like bull faze may come end of 2023 and goes into 2024?
potential rally to 35-42-49 if we break 27.17 🎯
boost and follow for more! thanks ❤
Is DKNG a bettable buy?As shown on the daily chart DKNG has been on a clean rise this entire year now up 100% over
the first six months. An earnings report is due in about three weeks. Sports betting
may have some seasonability and most of all collegiate and professional sports are in the
off season at this time. No matter, the chart shows a steady rise since the last earnings
( small) beat in an ascending channel between two and three standard deviations above
the mean VWAP anchored one year ago. The MTF RSI indicator of Chris Moody shows both
RSIs at about 70 and so not overbought. Trading volumes are steady and consistent. The
relative volatility indicator shows some increases in the past 9-10 trading days. Overall,
I believe that DKNG is suitable for a long swing trade which I will close just before
earnings.
