Wyckoff Power Charting

WYNN Win

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Wynn Resorts is a favorite stock to study. WYNN tends to have big cyclical trends which repeat over and over again. These trends are wonderfully persistent in their upward and downward movements. Also prior to a major change of trend, a Cause builds for either Accumulation or Distribution. And these Causes can then be evaluated with horizontal Point and Figure (PnF) count objectives.


                                                        for active chart click here

Wynn Resorts has a large presence in the China gaming region of Macau. Let’s have a look at the China Large-Cap Index (FXI) as a measure of the health of their domestic economy. The FXI made a final low in October 2018 after a major decline during the year. The currently rising trend is discounting future improvement in economic conditions for China. Note that Wynn Resorts (WYNN) is highly correlated to the upward and downward trends of the FXI. Now both FXI and WYNN are in steeply rising price trends. 

The relative strength trend of FXI to the S&P 500 is now decidedly leading the way upward. FXI has been leadership since October. Could it be that WYNN is a leveraged approach to participating in the new rising price trend of FXI?

                                                for active chart click here

In October of 2018 WYNN had a Selling Climax. Selling accelerated below the channel into an Oversold condition. The Throwunder of the downward channel, into a Selling Climax also fulfilled a Distributional Point and Figure count objective. Notice the return back into the Downtrend channel with a rally into an Upthrust (UT). The Spring and a Test touched the Oversold line one last time. Then a stiff Change of Character rally took WYNN up above the Supply Line and the Resistance Line of the Accumulation. Accumulation appears to have been completed and a new uptrend has started. The recent rally has touched the top of the uptrending channel and now is Overbought. Price weakness back into the rising channel could produce another buying juncture for WYNN.

The Accumulation studied above has built a PnF cause quickly. The WYNN PnF count returns to the prior high prices. Both WYNN and FXI could be influenced by trade negotiations. Completed Accumulation, higher PnF objectives, and relative strength leadership point to a robust continuation of the uptrend. We will be patiently waiting for areas of Reaccumulation to reveal the best entry points. A rising FXI index puts a tail wind into the WYNN uptrend. These are the elements of a Campaign Candidate.

All the Best,

Bruce
@rdwyckoff

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Power Charting Video

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Bruce Fraser
About the author: , an industry-leading "Wyckoffian", began teaching graduate-level courses at Golden Gate University (GGU) in 1987. Working closely with the late Dr. Henry "Hank" Pruden, Bruce developed curriculum for and taught many courses in GGU's Technical Market Analysis Graduate Certificate Program, including Technical Analysis of Securities, Business Cycle Analysis and the Wyckoff Method. For nearly three decades, he co-taught Wyckoff Method courses with Dr. Pruden, and has also used this approach to the markets as the foundation of his own trading for over 35 years. Learn More
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