It’s Make or Break at $60 Support for WYNN

Oct 23, 2009: 9:00 AM CST

Wynn Resorts (WYNN) has come into a “Make or Break” support zone at the $60 per share level.  Let’s take a look at its daily chart and note Fibonacci, Moving Average, and Bollinger Band support coming together just beneath price right now.

We see price in an “ABC” pullback (retracement) pattern in an uptrend into a critical support zone.

We see the 50 day EMA at $62.28 and the bottom (lower) Bollinger Band at $61.46.

Beyond this, we see the 61.8% Fibonacci retracement from the September lows to the recent highs coming in at $60.17… which also corresponds with a prior price resistance zone (polarity principle) from the August swing highs.

Volume has declined during this pullback which is bullish (declining volume during a retracement is generally bullish).

Price also formed a hammer off this level.

It’s up to the buyers to keep this buy signal (hammer off confluence support) going, and if so, they will have successfully defended the $60.00 per share level, which sets up a minimum target of a retest of the prior highs at $75.

However, given the generally overextended status of the S&P 500, any move beneath $60 in WYNN would likely trigger a host of stop-losses (enter the “pocket of stops”) which would be a quick sell signal to target a price move down to perhaps the $50 per share level.

Let’s watch and perhaps even trade closely to see the outcome of this confluence support structure.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

3 Comments

3 Responses to “It’s Make or Break at $60 Support for WYNN”

  1. Chart Junkie: Jeffries is vulnerable, Energy is Interesting, and Wynn Resorts is on the Brink | Wall St. Cheat Sheet Says:

    […] Precision Capital Management submits some more technical analysis candy: “We have posted Anchored VWAP charts here before, but that is only a part of Paul Levine’s MIDAS Method.  The other part is the Topfinder/Bottomfinder (TBF) curve.  When price pulls away from VWAP, a TBF curve is fitted to the first pullback.  Because of the symmetrical relationship between the accumulation and distribution volume of a strong trend, the TBF curve will often predict when the fuel of a rally is consumed.  Above shows a recent TBF curve for Energy Bull 3x ETF (NYSE: ERX), which began October 5 and ended October 21, 2009, which amply demonstrates what happens when the fuel runs dry.  We are doing some exciting research to take MIDAS a step further and will regularly update our readers (free registration).  Also, we encourage you to visit the new website of MIDAS experts David Hawkins and Andrew Coles, who recently wrote a three part series of articles in Technical Analysis of Stocks & Commodities, and who are doing some exciting new research of their own.” (Source: Precision Capital Management) Corey Rosenbloom, the Technical Analysis Professor, submits: Wynn Resorts (Nasdaq: WYNN) has come into a “Make or Break” support zone at the $60 per share level.  Let’s take a look at its daily chart and note Fibonacci, Moving Average, and Bollinger Band support coming together just beneath price right now. (Source: Afraid to Trade) […]

  2. Dan de Man Says:

    I agree with you Corey. Trading against the index is not smart. Trading is about probabilities and swimming up hill is dumb.

    Cheers,
    Dan

  3. Dan de Man Says:

    I agree with you Corey. Trading against the index is not smart. Trading is about probabilities and swimming up hill is dumb.

    Cheers,
    Dan