Entain stock prediction: how will ENT react after HY 23 report?

• Entertain stock price prediction:  the Half-yearly 2023 report is here. How will the market react?
• The company has made improvements in its sales but is currently losing its funds in the operations
• The price is just above its 50 EMA. Will it take the support of it or cross it downwards?

Key highlights of the latest half-yearly report of 2023

The revenue is increased by a margin of 13% to the value of GBX 2.38Bn, as compared to last year

The Gross profit has also seen a growth of 4.26% and is currently reported to be GBX 1.21bn 

However, the company is seen to lose in its operations with an operating loss of GBX 370M

The P.E. ratio of the firm is negative as the company is losing its net value.

The gross margin of Entain PLC is 51%

The net margin is seen declining from the past 2 years and is currently standing at -20%

The company is high on Debt, with a Debt to equity ratio of 1.20

The financial data is based on the firm’s last half-yearly report.

Recent past performance of ENT stock

After a positive annual earnings report followed by a dividend, the company’s share price during April started rising, from a floor of GBX 1,160, the ENT share price rose to GBX 1,516 in May 2023. 

With such spiked prices, the bulls faced regular rejections, and the price was corrected to GBX 1,321 in June 2023. Following more corrections in July, the price started rising as the positive half-early earnings news was circulating in the market. 

Current technicals for the ENT stock

Currently, the ENT share price has broken its immediate resistance and is trading at the level of GBX 1,340 as of this writing, between some supports and resistances, while the indicators are also giving some insights for the near future 

Supports: the first and immediate support for ENT share price is at the level of GBX 1,293 which was the broken resistance in the recent past, The second support is at the level of GBX 1,199.

Resistances: The first and immediate resistance is at the level of GBX 1,486 where the bulls have just been tested recently, the second resistance is at GBX 1,486. The supply zone for both the resistances is seen as shorter than the demand zones for supports

Indicators

MACD: The MACD chart is above the zero level and the signal line is at 26.46 which is almost at the same level as the MACD line at 25.48. Both the lines are looking to do a crossover.

RSI: The RSI, after touching its overbought level of 70 is at the neutral territory of 50. However, the SMA line is above the RSI line which is indicating a bearish momentum shortly.

EMAs: The 50 EMA did a cross-over with the 200 EMA during June 2023 and is currently below it after some price correction. Right now the 50 EMA is at the level of GBX 1,321 and the 200 EMA is at the level of GBX 1,341. Both the lines are close to each other and are looking forward to performing a crossover which may result in bullish sentiment in the market.

Conclusion

The company has not performed very well in this half-yearly report so the share price is likely to see some short-term corrections, However, The ENT price prediction will fall towards the behavior of the price with its EMAs. If the ENT share price takes support from its 50 EMA which is likely to happen, then it will move towards its 1st resistance of GBX 1,405. If that becomes the case then the MACD will also give a buy signal as the crossover wouldn’t happen in the MACD graph, this will propel the bullish momentum 

Selling can be done if the price breaks its first support which is at GBX 1,119and its demand zone, the fall will be supported by the likes of RSI as the SMA line is showing a bearish sentiment.

Technicals

Support: GBX 1,294, GBX 1,119

Resistance: GBX 1,405, GBX 1,486

RSI: 50

50 EMA: GBX 1,321

200 EMA: GBX 1,341

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.