A Closer Look at DraftKings Inc (NASDAQ: DKNG)DraftKings Inc, a name synonymous with digital sports entertainment and gaming, has showcased a roller-coaster journey on the stock market. Let's delve into a simplistic examination of its performance, focusing on the key price actions and what lies ahead.
In 2020, prior to the pandemic-induced market crash, DraftKings enjoyed a rally of about 90%, with its stock price soaring from roughly $10 to a high of $19.50. However, the pandemic sent it plunging to a low of $10.60. Unfazed, DKNG rallied back impressively, marking a more than 300% increase to touch a high near $45.
The stock didn't stop there; while making a head and shoulders pattern it hit a new high of $74.38, with the shoulders forming around the $64 mark. However, a breakdown from the neckline at $45 shoved the stock to a low of $9.77 over a span of 7 months. Despite this setback, DKNG displayed a slow and steady rebound, climbing back to a price range of mid-20s to mid-30s where it's now consolidating into a tight symmetrical range.
Analysts are tuning into this narrative with optimism. A lot of stock price forecasts suggest a potential hike to a range of $37 to $44, translating to a 25% to 45% increase from the current hovering price of about $30.
DraftKings has been hitting the mark on earnings for the past three quarters, which paints a promising picture as we approach the next earnings report slated for early November. This could potentially signal a breakout from the current symmetrical pattern on the upside, continuing the stock’s upward movement.
However, it's crucial to note that symmetrical patterns don’t always spell continuation. There’s a chance for a downturn, marking the start of a downtrend. As with any investment, caution and thorough research are key. The upcoming earnings report could serve as a significant indicator of where DKNG is headed next, so add this stock to your watchlist. Like and follow for more updates.
Remember, the information shared here does not constitute financial advice. It's always prudent to conduct your own thorough research before making any investment decisions.
