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
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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