Gambling on a Trend Reversal in WYNN: Big Picture View

Feb 12, 2016: 1:27 PM CST

Casino stock Wynn Resorts (WYNN) was a darling rising stock of 2013 but the trend reversed into a relentless bear market through 2014 to the present.

Are shares staging a reversal here?  And what levels are important?

Let’s take a look:

Price more than doubled in the run-up from 2012 to the 2014 peak above $230 per share but the tide turned early in 2014 as shares tumbled from $230.00 to the current $50.00 per share level.

I highlighted three prior “Range Rectangle” Patterns on the way down that were mere pauses or consolidations in the ongoing downtrend.

We’re seeing yet another “Range Rectangle” between the $55.00 per share level and $70.00.

Yes, shares can break even lower – that’s what happened each of the prior three examples – but keep your focus on the $70.00 level.

Right now it’s the falling 20 week EMA and a solid breakout opens a bullish “reversal” pathway toward $85.00.

Here’s the shorter-term picture on the Daily Chart:

Buyers bounced shares rapidly higher off the $50.00 per share level and a clear “Range Rectangle” pattern has developed between the $60.00 (clear support) and $73.00 wider resistance levels.

Note that the falling 200 day SMA overlaps the weekly target into $80.00 per share.

Whatever other strategies you’re using, focus on the current rectangle, note the prior similar events, and trade the eventual breakout above $73.00 or beneath $60.00.

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Gambling on a Trend Reversal in WYNN: Big Picture View”

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