DraftKings Inc. (NASDAQ:DKNG) shares are trading lower Wednesday after NCAA President Charlie Baker announced he is working to ban college prop bets from all betting markets.
The Details:
Baker posted his intent to seek the banning of college prop bets in all betting markets in order to protect student-athletes and the integrity of the game.
“This week we will be contacting officials across the country in states that still allow these bets and ask them to join Ohio, Vermont, Maryland and many others and remove college prop bets from all betting markets,” Baker said in a statement on X.
“The NCAA is drawing the line on sports betting to protect student-athletes and to protect the integrity of the game – issues across the country these last several days show there is more work to be done,” the statement continued.
DraftKings shares have gained approximately 30% year-to-date and have been marking new all-time highs in recent days amid a flurry of analysts’ price target increases.
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DKNG Stock Prediction 2024:
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at DraftKings, an investor could make an assessment about a stock’s long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For DraftKings, the 200-day moving average sits at $33.81, according to Benzinga Pro, which is below the current price of $45.63. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
DKNG Price Action: According to Benzinga Pro, DraftKings shares are down 5.8% at $45.85 at the time of publication Wednesday.
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