TheBushTrader

BET - Pre Earnings Squeeze

Long
ASX:BET   BETMAKERS TECHNOLOGY GROUP LTD
Australian betting technology provider Betmakers is a few days away from its 2020 earnings announcement (27th August). Where is the market expecting the SP to go with Wednesdays announcement?
  • The last 2 weeks has shown the stock enter a significant compression phase with Bollinger Bands contracting inside the Keltner Channel in a TTM Squeeze formation.
  • Trading volumes are down for the last fortnight
  • The market is clearly taking a pause in anticipation.
  • As at today the TTM Squeeze indicator show market forces in the balance......however
  • On Balance volume as continued to rise over the last 2 weeks and the 8 day EMA has recovered ground against the 21 day EMA
Which way will the market move?
Unless the earnings report has a significant negative surprise then I expect a short term bump in price into the 0.50 range.
With a positive surprise, such as acquisition of new revenue sources, then a larger jump could be on the card.
With a Stop Loss at 0.395 to catch a large negative swing, I am betting on a positive jump in price by Friday 28th and into the following weeks.

cheers BT
(always DYOR)
Comment: Update: The first couple of days after the earning announcement were a little flat, much like the earning announcement itself. No suprises either way, so a few people selling off due to not much news. However on the following Friday thanks to the relationship between PointsBet Holding and BET, the BET share price exploded upwards over 24%. With a 10% pullback today (Monday) with sellers taking their windfall, there is a gap to fill and continue upwards over the next few weeks.

cheers
The Bush Trader