Watch these Key Levels for Trading the Breakdown in WYNN

Dec 5, 2014: 12:44 PM CST

If you’re trading WYNN stock or considering it – or just want to learn a neat real-time lesson as price breaks lower – then take a moment to view the current trend, charts, and levels.

We’ll start with the broader picture trend on the Monthly Frame:

Just based on monthly closing highs, the key simple level on the Monthly Chart is the current $160 per share shelf.

However, the rising 50 week EMA intersects $150 as a likely downside target should the price floor fail.

Notice the two prior sell-swings (2007’s reversal and 2011’s pullback) and compare the current retracement.

While the trend is up – and WYNN has more than increased 10 times from the $20.00 low – price does tend to swing from pro-trend to counter-trend phases (we’re seeing a counter-trend phase now on the higher frame).

Of course, that counter-trend on the monthly chart is a DOWNTREND on the Lower Frames:

WYNN is crafting a series of lower lows and lower highs and retracing past the 50% “half-way” Fibonacci Level.

The $170 level (highlighted) failed and price is now open to fall through the pocket toward the confluence of the 61.8% Fibonacci Level and 200 week SMA near $150.

Keep in mind that $150 is also the rising 50 month EMA – a multi-indicator simple confluence.

Finally, we have the clear downtrend/sell phase as seen on the Daily Chart.

Note the prior sideways highlight from May until the September breakdown under the $195.00/$200.00 per share level.

The September sell-off sent price toward the $175.00 support shelf when another smaller range developed between $175 to $190.

This week, price collapsed down under $175 and may be trading down first into the $160 level and then potentially the $150 higher frame support confluence.

For objective (non-biased) planning, keep in mind that a firm rally back above $175 could invalidate the downside targets and spring a BEAR trap.

If shorting this stock, be aware of the trap outcome (which targets $190 if firmly above $175).

Keep watching these levels and planning your real-time strategies accordingly.

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Watch these Key Levels for Trading the Breakdown in WYNN”

  1. Mitcheel Says:

    It’s a really solid trade if the levels are indeed broken but there are doubts and we need to be careful about that. Whenever I see a good opportunity I do trade because I don’t have much fear thanks to OctaFX broker’s epic rebate service, it gives me 15 USD per lot size trade and I am able to trade with comfort knowing even if I lose I stand a chance to make pretty good recovery with the rebate service.