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June 15, 2023
DraftKings traders are preparing for a tough opening bell in a hour time as pre-market trade emphasizes yesterday's bearish bias. After closing the previous trading day at $26.14 and dropping to $25.18, the sports betting operator closed yesterday at $25.27. By the end of the session, DraftKings gave up a total of 3.33%.
United States Initial Jobless Claims is next today at 12:30 UTC.
Producer Price Index in United States fell short of market expectations (-0.1%) with a reading of -0.3%, continuing the decline from the previous figure of 0.2%.
This down-slide takes place despite the positive US macroeconomics indicators data that was published earlier — data for United States Crude Oil Inventories published yesterday at 14:30 UTC came out at 7.92 million, beating projections of 1.48 million and showing improvement over the preceding figure of -451,000.
While price action maintains a negative bias, United States Interest Rate released yesterday at 18:00 UTC with a figure of 5.25, while the previous figure was 5.25.
DraftKings Inc. made an initial break below its 5 day Simple Moving Average at $25.43, a possible indication of a forthcoming negative trend. DraftKings's upper Bollinger Band® is at $26.39 which indicates a further downward move may follow. In contrast, DraftKings could begin to recover as it approaches significant support, now 31 cents away from $24.96. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting DraftKings to extend its recent losses.
DraftKings was not the only decliner in the consumer discretionary sector; Walt Disney closed at $92.45 (down 1.49%).
On the other hand, positive performances could be seen by looking at other consumer discretionary stocks as Toyota traded at $165.57 after closing yesterday's trading day at $158.08 (up 4.74%). Nike traded at $112.86 after closing yesterday's trading day at $106.78 (up 5.69%).
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as as things stand, upcoming United States Retail Sales data is projected to fall short of market expectations with newly published data of -0.1%, following on from the preceding figure of 0.4%. New data is set to be published today at 12:30 UTC. United States Core Retail Sales expected to decline to 0.1% while its preceding data was 0.4%, data will be available today at 12:30 UTC.
Furthermore, United States Philadelphia Fed Manufacturing Index (Jun) will be released today at 12:30 UTC.
The stock has been trending positively for about 2 months. This year has been a bright one for the sports betting operator after trading as low as $10.72 and going on to appreciate by 119.3% year to date.
