Will DKNG Bounce or Fall Further?
$DraftKings Inc.(DKNG)$
$27.92 (-2.41%): Bank of America Downgrade: Changed rating from "Buy" to "Neutral"
DraftKings (DKNG) is at a critical technical juncture, having recently hit a new 52-week low and a bearish "death cross" pattern ahead of its Q3 2025 earnings report. Here is a detailed analysis of its current situation.
DraftKings closed at $27.92, down 2.41% on the volume of ~17.15M shares – suggests selling pressure continues. The stock trades ≈42% below its confirmed 52-week high of $53.61 and remains in a sustained downtrend.
Recent Q3 earnings surpassed EPS expectations, but conservative forward guidance and analyst downgrades have maintained downward pressure.
Technically, price tests crucial support at $25 (52-week low) with the Death Cross pattern still active (50-day EMA at $36.49 above 20-day EMA at $32.57).
MACD shows a bearish histogram, expanding signal the downtrend to continue (MACD -2.53, Signal -2.34).
RSI at 22.93 indicates oversold conditions.
The 20-day EMA (~$32.57) and 50-day EMA (~$36.49) create immediate resistance layers.
Valuation shows a negative P/E (TTM) consistent with growth investments, while sector peers average ~28x. Consensus 12-month targets span $35–$65 (avg $49).
Near-term realistic target band sits at $32–$35, with Resistance at $29.76/$32.34, and Support at $25.
Risk & Disclaimer:
Sports betting sector faces regulatory uncertainty, intense competition, and customer acquisition cost pressures. DKNG exhibits high volatility around earnings and legislative developments.
This analysis is based on public data from Bloomberg and TradingView for technical reference only – not investment advice. Investors should consult multiple sources and consider risk tolerance before trading.
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