Gambling powerhouse DraftKings Inc. (NASDAQ: DKNG) is flashing a rare signal that investors typically only see a handful of times in a stock’s lifetime. Its Relative Strength Index (RSI), a key measure of momentum, has collapsed below 15, marking the lowest reading in company history. For context, a reading below 30 indicates that the stock is oversold.
That means that after a brutal five-week stretch, which erased more than 30% of the company’s market value, shares of DraftKings can officially be considered extremely oversold. Given that the broader tech market is at, or near, all-time highs, the fact that the sports betting giant is moving in the opposite direction will be a painful pill for investors to swallow.
