Don't Ignore This Chart!

Could Wynn Resorts Be The Next Winner? (WYNN)

 | 

Wynn Resorts has been on a train out of town for a while. After making a major high just under $250 back in 2014, WYNN has been the casino stock that continually cleaned money out of your wallet. However, some things have changed this year. This is the first time WYNN has had an SCTR above 75 in a while! It also broke to 5-month Relative Strength highs for the first time in the downtrend. There have been huge positive volume days since the October lows, which suggests some might be interested in owning this stock at about 75% off the highs.

The MACD shows a lack of momentum in the stock since it fell out of the highs. At best it could barely get above zero for a few days. A break in this momentum to a one year high would also signal a big change. 

There is one thing that might come into play. I have posted 2 red down arrows on the chart showing highs near the end of February only to roll over. The change in the other indicators suggests, this time, it might be more than a bear market rally, but traders should be aware of the possibility.

Price is always king, and price jumped to a new 3-month high today. Time to add chips or take chips off the table? I like it here, with a close stop at $72.25, if this reverses quickly.

Good trading,
Greg Schnell, CMT

 
Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus