Building a Fibonacci Retracement Grid for WYNN

Oct 14, 2016: 11:23 AM CST

After a large rally – or lengthy decline like we’re seeing in WYNN Resorts – you can build a Fibonacci Retracement Grid of Confluence for the stock.

The goal is to identify short-term and longer-term upside bounce (rally/retracement) targets.

We start with a potential reversal low and then “build” Fibonacci Retracements from the high and each subsequent swing high.

Here’s what the grid shows in WYNN and we’re at a surprising boundary level:

For more information, check our our educational page on “Fibonacci Confluence.”

With that in mind, price plunged from $250 to $50 per share from 2014 into 2015.

Price found a “Double Bottom” Reversal that began with a January 2016 rally and the question became:

“To where will the rally occur?”  or “What are my upside targets if I want to trade WYNN long?”

We’re seeing the answer now – it’s just above the $100 per share level.

The goal is to identify OVERLAP or Confluence of different Fibonacci Levels from different swing highs that are drawn from the same swing low.

To be precise, we have our first overlap roughly where price is trading currently within the range at $92.50.

The second immediate (short-term) overlap is the $105.00 per share level.

From April to present, price has bounced between these levels consistently.

Should we see a continuation of the rally higher above $105, then we would be looking toward a loose confluence at $120 per share and eventually the tighter confluence just under $140 per share (yellow highlight).

Keep working with these levels and note how price trades toward and away from these Fibonacci AND Confluence levels.

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Corey Rosenbloom, CMT

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1 Comment

One Response to “Building a Fibonacci Retracement Grid for WYNN”

  1. Praveen Says:

    We definitely need to be careful with our targets especially short term because the risk is seriously high and that’s what we must consider. I am currently trading with OctaFX broker where I keep everything simple and easy due to the swap free account where I can do long term trading very nicely and there are no issues at all over anything while they also have 24/5 support service available and that’s really what makes me standout and adds to the performance.