Despite announcing impressive revenue growth, the Entain share price slumped 8%. But the tide is turning, and a new high may be on the cards. Over the last four days, ENT has fought back from the abyss, jumping almost 5% and showings signs the all-time high of 2,000p may soon topple.
FTSE 100 constituent Entain Plc (LON: ENT) started 2021 with a flyer. The share price jumped more than 25% on the first day of trading, and apart from a wobble at the end of January, it has been trending higher ever since. As a result, ENT is up 30% year-to-date and almost 90% higher than its 2020 listing price.
The return of sporting events has been a huge boost for Entain, the international sports betting and gambling company. Entain, which owns Ladbrokes, Bwin and PartyPoker, saw a surge in business during this summer’s European football championships, undoubtedly aided by the English team’s progression to the finals. And this bump should continue as fans across the UK return to football stadiums and horse-racing tracks.
Furthermore, there remains a chance that Entains’s US partner MGM Resorts will make a fresh attempt to scoop up the British bookmaker.
Earlier this year, casino giant MGM Resorts, which has a joint-venture with Entain, tabled an $11 billion offer for the company. Entain rejected this, but rumours are swirling that an improved offer may be in the pipeline.
ENT Technical Analysis
The daily chart shows the Entain share price recovery over the last week has lifted ENT back above its long-term uptrend at 1,856p. Furthermore, the rally from 1,798.5p to 1915p reclaimed the 50-day moving average at 1,837p.
This should give the share price considerable uplift, and a natural target becomes the upper end of the rising channel at 2,035p. However, this thesis depends on ENT remaining in the trend and above the 50 DMA. And on that basis, should the price slide below 1,837, the bullish calls becomes invalid.
Entain Share Price Chart (Daily)
For more market insights, follow Elliott on Twitter.