Don't Ignore This Chart!

Penn National (PENN) Awaiting Breakout

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The Dow Jones U.S. Gambling Index ($DJUSCA) has been under pressure for quite some time with many gambling stocks under pressure as well.  That has not been the case for Penn National Gaming (PENN), however, as it's been in an uptrend and has been a tremendous relative performer, waiting on the doorstep of another potential breakout, one that would measure up another 12-13%.  Notice the highs reached in each of the last four months?  They're all close to 17.00 with the low in April close to 14.80.  That gives us a measurement of roughly 2.20 to add onto the 17.00 breakout level.  Thus, if we see the breakout on heavy, confirming volume, we should look for a target of perhaps 19.20 in time.  Check it out:

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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