888 Holdings Share Price Is Forming A Bottom: Here’s Why
888 Holdings share price has been in a consolidation phase for about 15 trading days. The shares of the gambling company are trading slightly below 82p after it posted its Q3 earnings report in October. The shares of the gambling firm are changing hands at 81.45 and have gained about 0.75p on the daily timeframe today.
The FTSE 100 index opened in the green for the second day of the week bolstered by the growth in the banking and consumer sectors. Additionally, investors will also be closely watching the interest rate decisions of the Bank of England and the Federal Reserve this week.
In October, the British government expressed its intention to put a 1% levy on every online gambling website and 0.4% on traditional gambling websites. The government expects to raise about £100 million per year from this move to fund research, prevention, and treatment of gambling addiction.
The Q3 earnings report for 888 Holdings was also released this month. The gambling company posted a revenue of £405 million which was 10% down from its 2022 figure. Furthermore, the EBITDA was £126 million which represented a margin of 31%. Nevertheless, 888 Holdings share price is trading 41.4% down from 134p, which was their 2023 high.
888 Holdings Share Price Forecast
Last month, I predicted the retest of 82p when LON: 888 was trading above the 109p support level. This forecast has been perfectly met as the price is currently hovering around the 82p support level. Furthermore, the acceptance below the 200 MA is painting a bearish outlook for the price.
There is a bullish divergence developing on the daily RSI and MFI indicators which points towards a strong rebound in the price soon. Due to this reason, the 888 Holdings share price forecast is not looking very bearish anymore. I expect a strong surge toward the 200 MA level provided the bulls hold the 82p support level. In case of a clear break above 200 MA, a downside retest of the 109p level will be on the cards.