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- 1 DraftKings stock price (NASDAQ: DKNG) fell 9.50% in October 2023.
- 2 DKNG stock price faced rejection from the $30.00 hurdle.
- 3 DraftKings Inc. is expected to release earnings on November 2, 2023, for the period ending September 2023.
DraftKings stock price (NASDAQ: DKNG) faced rejection from $30.00 and fell 9.50% (approx.) in October 2023. It lost the bullish momentum and reversed in a downward direction.
DKNG stock price has dropped below the 50-day EMA showing that the short-term trend has turned down. However, the 200-day EMA is still intact and acting as an immediate support for the bulls.
In the last two months, DraftKings stock price tried to break the $30.00 supply zone. However, sellers were highly active and did not let the price sustain the higher levels.
On the day chart, DKNG stock price seems to be stuck in the wide range between $25.00 to $32.00. The next direction of the stock will be visible when prices break either side of the range.
Previously, DKNG share price took support near $25.00 and showed a strong bounce back from the lows. So, investors expect that a similar kind of pattern might be repeated.
The quarterly earnings are scheduled for next week so the volatility in the stock may rise. Therefore, investors need to be careful and wait for signs of upside reversal before building bullish bets.
Will DraftKings Stock Price Hold $25 After Earnings?
DraftKings stock price (NASDAQ: DKNG) corrected a lot from its swing high and eroded the gains generated in the past few months. At present the stock price is near $25.00 which seems to be a make-or-break level.
DraftKings Inc. is expected to release its quarterly earnings on November 2, 2023. Market analysts predicted an EPS of -0.692 and revenue of $699.389 Million.
If the company reports better than expected EPS and revenue then DKNG stock price might hold the $25 level and show a bounce. However, if the company disappoints in earnings then stock price might slip below the 200-day EMA ns and turn bearish.
DKNG Stock Price Near to Lower Range of Consolidation
DKNG stock price is trading near to the lower range of its two-month consolidation. If sellers won the battle then stock may show a sharp decline to $22.00.
However, if the buyers won the battle and defended the $25.00 support then the stock may show a pullback to $31.00.
The MACD curve in the DraftKings stock sloping downward denotes bears are more active as compared to sellers. So the possibility of breaking down is high. Whereas, the RSI at 41 slopes upward denoting the price may consolidate for some time.
Conclusion
DraftKings stock price (NASDAQ: DKNG) reverses down and continues the correction ahead of earnings. However, the stock is near $25.00 which will act as a make-or-break level.
The analysis suggests that until DKNG stock price breaks down $25.00 it will be risky to create fresh shorts.
Technical levels
- Resistance levels: $31.10 and $34.59
- Support levels: $25.36 and $22.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
