These Two Stocks are Exploding Higher for Us + DKNG
Just last week, we highlighted an opportunity in oversold shares of Archer Daniels Midland (ADM). At the time, it had just gapped to $52.31, and became aggressively oversold on RSI, MACD, and Williams’ %R. We also argued most of the negativity was priced in. Since then, ADM has rallied back to $56 a share, and could potentially refill its bearish gap around $67.50.
Even our Advanced Micro Devices (AMD) trade idea is doing well.
The last time we recommended AMD, it traded at $147.96. After testing a high of about $175, it’s now trading at $172.06. From here, we’d still like to see it closer to $200 a share.
As for new ideas, take a look at DraftKings (DKNG) heading into the Super Bowl and in just a few weeks, March Madness 2024.
According to the American Gaming Association, $7.61 billion was bet on the Super Bowl in 2021. In 2022, the AGA estimated that more than $8 billion would be wagered. In 2023, $16 billion was wagered. Now, as we head into the 2024 Super Bowl, even more is expected. Some estimates have the number as high as $20 billion.
While the DKNG stock is a bit stretched at the moment, we believe it could push even higher heading into the Super Bowl, and heading into March Madness in just a few weeks. Helping, DKNG is now active in more than half of all U.S. states. Better, according to CEO Jason Robins, the company has a $2 billion EBITDA opportunity in those existing states. If it had access to 100% of all U.S. states, that number would be closer to $6 billion.
Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies