The recent price movement in Delta Corp suggests a classic swing trading opportunity after a significant decline. While the stock has reacted from support levels, this position is a high-risk play driven by a complex regulatory landscape.
* The Technical Case: The stock has been heavily beaten down (down over 30% in the last year) due to the 28% GST on gaming. Its current bounce is a technical rally from these lows and offers a potential entry point for a swing position.
* The Crucial Regulatory Fact: The new online gaming bill is not a direct positive for the company. On the contrary, it aims to ban real-money gaming, which would disrupt the broader industry. The trade's premise is that this chaos might indirectly benefit Delta Corp's live casino business by removing online competition.
* Key Consideration: Delta Corp has already exited the online gaming business. This means its future is tied to its live casino operations, not the online segment being targeted by the new law.
Conclusion: This is a high-risk swing trade reliant on technical momentum and a highly uncertain interpretation of new regulations. Given the legislative ambiguity and the inherent volatility, a strict stop-loss is critical.
This can also be included in long term high risk-high reward portfolio
* The Technical Case: The stock has been heavily beaten down (down over 30% in the last year) due to the 28% GST on gaming. Its current bounce is a technical rally from these lows and offers a potential entry point for a swing position.
* The Crucial Regulatory Fact: The new online gaming bill is not a direct positive for the company. On the contrary, it aims to ban real-money gaming, which would disrupt the broader industry. The trade's premise is that this chaos might indirectly benefit Delta Corp's live casino business by removing online competition.
* Key Consideration: Delta Corp has already exited the online gaming business. This means its future is tied to its live casino operations, not the online segment being targeted by the new law.
Conclusion: This is a high-risk swing trade reliant on technical momentum and a highly uncertain interpretation of new regulations. Given the legislative ambiguity and the inherent volatility, a strict stop-loss is critical.
This can also be included in long term high risk-high reward portfolio
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.