Is This Finally the Reversal Low for WYNN?

Oct 2, 2015: 11:24 AM CST

Did we just see the bottom for shares of Wynn Resorts (WYNN)?

Let’s update our chart and note the specific reason why this stock is getting a big bullish burst this morning.

What triggered an almost 20% surge ($10.00 up from Thursday’s low) in a single session?

It wasn’t the Jobs Report pre-market but instead it was the release of a research report from Goldman Sachs – as reported in Bloomberg News – that highlighted “The 40 Stocks You Should Buy and the 40 Stocks You Should Sell Right Now.”

Perhaps not surprisingly given the persistent downtrend (which we covered recently in an update including the Weekly Chart), Goldman Sachs listed WYNN as the #1 Stock on the “Stocks You Should Buy” list.

Some traders and investors had a knee-jerk reaction and did just that, propelling price higher.

It’s up to you to determine whether you agree with the analysis and if this would be a good stock to add to your portfolio at these levels, considering the persistent downtrend in price.

Nevertheless, as an aggressive trader, shares were into a buying opportunity given support at $50.00 per share with persistent positive momentum divergences.

Here’s a peek at the intraday chart for clarity on the positive divergence and set-up:

Similar to September 11th, price staged a short-term rally (quick retracement up) after a positive divergence developed.

Now, we see another positive divergence pattern forming into $50.00 per share and the follow-through – albeit news driven – of another upside burst higher.

It’s generally easier to forecast very short-term moves than longer term movements due to more variables in the analysis.

Nevertheless, Wynn (WYNN) shares are seeing strong upside potential thanks to a positive report from Goldman Sachs.

Do your research and consider this and many other stocks for buy (or short-sell) candidates as usual.

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Corey Rosenbloom, CMT
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One Response to “Is This Finally the Reversal Low for WYNN?”

  1. 10/04/15 – Sunday’s Interest-ing Reads | Compound Interest-ing! Says:

    […] Wynn Resorts ($WYNN) has just gotten crushed. (blog.afraidtotrade) […]