Winning Opportunities in Online Gambling Stocks: A Look at DraftKings and Flutter Entertainment

As we navigate the ever-evolving landscape of the stock market, especially in the realm of online gambling, it’s easy to overlook promising investments amidst the usual noise. While many gambling stocks have faltered in the fourth quarter, two stand out as strong performers: DraftKings Inc. (DKNG) and Flutter Entertainment Plc (FLUT). At Extreme Investor Network, we’re committed to providing you with insights that illuminate potential investment opportunities, and today we’ll delve deep into what makes these stocks particularly compelling in December 2023.

Market Overview: A Closer Look at the Stakes

Despite the S&P 500 enjoying a resurgence—currently about 16% above its August low—many traditional casino operators, such as Caesars Entertainment (CZR) and MGM Resorts International (MGM), have struggled. MGM has only gained about 10% since August, while CZR’s performance is slightly better than the S&P 500. Both stocks are currently languishing below their 200-day moving averages, indicating potential caution in the broader gambling sector.

However, refusing to dismiss the entire group could be wise. In stark contrast to their peers, DraftKings has soared approximately 35%, while Flutter’s remarkable 50% increase showcases their resilience and potential for future growth.

Breaking Down the Charts: DraftKings (DKNG)

DraftKings recently achieved a significant milestone by surpassing its late September swing high, effectively breaking through the psychological resistance at around $42—a critical level in technical analysis. This breakout aligns with a 61.8% Fibonacci retracement, typically seen as a bullish reversal point.

What’s particularly striking is DraftKings’ bounce off its 200-day moving average—a long-term trend indicator. Such bounces reinforce a transition into a more bullish trend, providing an excellent risk-reward setup for investors.

Additionally, the price action suggests the presence of an “inverted head and shoulders” pattern, indicating bullish momentum. As price broke above the neckline of this pattern, a minimum target of approximately $66 was established—an impressive upside from current levels.

Flutter Entertainment (FLUT): Soaring to New Heights

On the other side of the spectrum is Flutter Entertainment, the parent company of FanDuel and several other brands. In 2024, Flutter has not only maintained but amplified its bullish outlook, particularly following a breakout above its March high near $225. After retesting this breakout level successfully, Flutter found renewed support and launched into new territory.

Notably, Flutter’s recent positive earnings report caused a pronounced upside gap to all-time highs exceeding $250. This "gap and run" pattern is remarkable; it indicates substantial bullish sentiment where new buyers drive the stock higher beyond initial resistance levels. Flutter currently stands at a 12-month relative high, making it a magnet for investors looking for growth in the gambling sector, especially as its Q4 performance has exceeded broader market indices.

Why These Stocks Matter for Your Portfolio

With the S&P 500 and Nasdaq 100 continuing to demonstrate bullish trends heading into December, identifying stocks capable of outperforming these indices can seem challenging. However, with our focus on technical analysis and market fundamentals at Extreme Investor Network, we can discern promising setups.

Both DraftKings and Flutter Entertainment not only exhibit strong technical profiles but also display relative strength characteristics that could make them excellent opportunities as we approach the year-end 2023 and beyond.

Investing isn’t just about chasing after the latest trend; it’s about finding the gems that have the potential for sustained growth. As always, we advise you to consider your unique financial situation and seek guidance from your financial advisor before making any investment decisions.

Conclusion

As the market fluctuates, astute investors owe it to themselves to keep an eye on emerging leaders like DraftKings and Flutter Entertainment. By integrating fundamental and technical analysis into your investing strategy, you position yourself to capitalize on trends rather than being swept away by the market’s volatility. Keep learning, stay informed, and remember that with the right information, big opportunities are always around the corner.

For more tailored insights and strategies designed to elevate your investment game, visit us at Extreme Investor Network—we’re here to help you navigate your path to success!