With the 2024 NFL season now underway, buy gambling stocks.
After all, according to the American Gaming Association, Americans are expected to spend about $35 billion on NFL games this year. That’s up from the $26.7 billion wagered a year ago.
As noted by CBS Sports, “The NFL remains king, and more money is wagered on the NFL than any other league. The NFL also attracts six-figure wages (and sometimes seven-figure wagers) on a regular basis throughout the season.”
That being said, investors may want to place bets on stocks such as:
DraftKings (DKNG)
Analysts at Needham recently reiterated a buy rating on DKNG and said it’s in a strong position to benefit in the online sports betting market. Analysts at Macquarie also named DKNG as a top online stock to own during the NFL season “because it is most exposed to near-term upside from favorable NFL game outcomes, higher structural hold and general online sports betting/iGaming growth momentum,” as noted by Seeking Alpha.
Three, in August, the company announced a $1 billion buyback program. And four, in its last earnings report, DKNG boosted its fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion from a prior range of $4.8 billion to $5 billion.
Technically oversold at $38.44, we’d like to see DKNG retest $42 near term.
A lot has been written through the years regarding Candlestick patterns, especially the Doji pattern. Of all the Candlestick patterns, the Doji pattern appears the most often. The Doji represents ‘indecision’ on the part of traders and it occurs when the ‘open’ (or the first trade of the day) and the ‘close’ (or the last trade of the day) are almost the same price.
The word almost must be emphasized because the open and the close don’t have to be exact. In fact, it’s rare that the prices are exactly the same.
When a stock or an index has been declining and reaches an oversold condition, it’s quite common for these declines to come to an end with the appearance of a Doji. At a market bottom, because a Doji pattern indicates ‘indecision’, it must be confirmed on the following bar by positive price action. If this positive price action results in an open above the high of the Doji bar, it creates a price ‘gap’. We refer to this formation as the Green Flag Doji Gap pattern.
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