Will 888 Holdings Share Price Be Able To Flip 110p Into Support?

Summary:
• 888 Holdings share price is retesting its 110p support. Bulls need to hold this level or a 25% correction might be on the cards

The shares of 888 Holdings are currently retesting the 109p support level, which was also the August low. A deeper analysis of the chart reveals the LON: 888 bounced 22% after retesting the same level back in August. At the time of writing, the shares of the gambling company stood at 110.2p and closed the day with a 0.36% loss.

The sharp sell-off in the 888 shares in the past few days can be attributed to a similar downtrend in the UK shares. The FTSE100 index experienced a correction after hitting the key resistance level of 77,00 points. The benchmark index remained sideways on Tuesday after a 0.78% drop on Monday. 

888 Holdings Receives Default Rating From Fitch Ratings

The American credit ratings agency, Fitch maintained its long-term default rating for 888 holdings. The agency listed the delay in the review of the UK Gambling Act and its potential impact on 888 as the reason for the negative outlook. This bearish news comes despite the betting company posting better-than-expected earnings for the first half of 2023.

Earlier in August, Jefferies increased its price target for 888 Holdings from 145p to 175p. The investment bank also maintained its “buy” rating for the gambling company. The betting company has had a staggering year as the shares of 888 holdings sit a colossal 117% above its yearly low.

888 Holdings Share Price Forecast

After a breakout in July, the LON: 888 share price is once again retesting the 110p level, which was a resistance level until the price broke above it in July 2023. The price now sits 21.6% above the 200 MA level on the daily timeframe, which is a bullish sign.

I expect a strong surge towards the yearly highs around 133p in the coming weeks, provided the share price flips the 110p level into support. However, the 888 Holdings share price forecast will become bearish if the price gains acceptance below 110p. The bearish target of 82p will be on the cards, which is the next significant support level on the higher time frame.

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