DKNG (Long) - Double bottom on a weekly; breakout from a base

Fundamentals

• 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 :)