A quick look at today: grinding lower but with no clear-cut direction, the fantasy sports contest and sports betting operator closed the session at $18.53 after forming a distinct $18.48 – $19.25 range.
DraftKings is currently trading at $18.53 following the release of FOMC Meeting Minutes data from the United States.
This down-slide takes place while positive United States macroeconomics indicators data was published earlier – United States Crude Oil Inventories came out at 597,000, better than analyst estimates of -583,000 and improving upon the previous reading of -3.74 million.
Amid the market gloom, United States Consumer Price Index released today at 12:30 UTC with a figure of 0.1%, while the previous figure was 0.4%. United States Consumer Price Index came out at 5%, while a consensus of analysts was expecting 5.2%.
DraftKings Inc. made an initial break below its 10 day Simple Moving Average at $18.61, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $18.8 currently serving as support. If price action breaks below, the next Fib hurdle is $18.27. DraftKings's upper Bollinger Band® is at $19.44 which indicates a further downward move may follow. On the other hand, note that DraftKings could begin to recover as it approaches significant support, now 8 cents away from $18.45. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen today and forecasting DraftKings to extend its recent losses.
DraftKings was not the only decliner in the consumer discretionary sector; Alibaba went down to $93.86, losing 5.91% after it closed at $99.76 today. Walt Disney closed at $97.97 (down 2.44%). Amazon went down to $97.83, losing 2.09% after it closed at $99.92 today.
Looking ahead, ongoing depreciation may be prolonged as projections for United States Initial Jobless Claims are set for a continuation of decline with 232,000 while previous data was 228,000; data will be released tomorrow at 12:30 UTC.
Some optimism can drawn from the fact that United States Producer Price Index is projected to outperform its last figure with 0.1%. It previously stood at -0.1%; data will be released tomorrow at 12:30 UTC.
This year has been a bright one for the fantasy sports contest and sports betting operator after trading as low as $10.27 and going on to appreciate by 69.68% year to date.