In taking a look at the chart of Wynn Resorts, you’ll see that a support level has formed. If this support level is broken, a strong move lower could occur.
Wynn Resorts (WYNN) owns and operates casino hotel resorts in Las Vegas, Macau, and Boston. The company’s revenues have been sharply reduced due to the ongoing pandemic. In the meantime, WYNN has enough liquidity to withstand the current environment.
Take a look at the 1-year chart of WYNN below with added notations:
Chart of WYNN provided by TradingView
WYNN has formed an important level of support at $70 (green) over the past 5 months. The stock has repeatedly rallied off the mark, and now it has fallen back near the $70 level again.
If the stock were to break below the $70 support, a trader could enter a short position with the expectation that lower prices should follow for WYNN.
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WYNN shares were trading at $74.31 per share on Wednesday morning, up $0.89 (+1.21%). Year-to-date, WYNN has declined -46.04%, versus a 4.03% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp, CMT
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...
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