DKNG (Long) - Double bottom on a weekly; breakout from a base
Fundamentals
Technicals
Trade
Follow me for more analysis & Feel free to ask any questions you have, I am happy to help
If you like my content, Please leave a like, comment or a donation, it motivates me to keep producing ideas, thank you :)
- Draftkings is not the best buy from a fundamental value as it is currently unprofitable, and according to analyst, it is about to stay that way for the next 2-3 years
- However, it is showing a robust growth with the earnings expected to grow almost 70% next year
- Unprofitable companies are also likely to start profiting once interest rates start to go lower from the impending recession
- It is important to stay cautious with high-beta stocks like DKNG as they can also be hit by the recession. Therefore there is a real need for prudent risk management
Technicals
- Technicals are looking really solid
- On a weekly, the stock formed a double bottom at the all-time low
- The stock price created a solid base from which it is just breaking out
- The RSI is creating a base near 60 level and looking like breaking higher; MACD has just entered positive
Trade
- The stock just started breaking out from a lovely-built base
- However, the stock market seems to be having a pullback which might last for another week or two, creating headwinds for DKNG
- Moreover, there is a very important FED meeting next week along with a CPI print
- Therefore, I would wait for the price action in the market to play out and wait for the data to come out and once the air is clear and in line with a thesis for growth stock, I would jump on the DKNG train
Follow me for more analysis & Feel free to ask any questions you have, I am happy to help
If you like my content, Please leave a like, comment or a donation, it motivates me to keep producing ideas, thank you :)