Wynn Resorts, Limited owns and operates destination casino resorts. As of February 15, 2018, the company’s Wynn Macau segment had approximately 273,000 square feet of casino space. Its Wynn Palace segment had approximately 420,000 square feet of casino space. The company’s Las Vegas Operations segment had approximately 192,000 square feet of casino space.
Take a look at the 1-year chart of Wynn (NASDAQ: WYNN) below with the added notations:
After trending lower all last summer and fall, WYNN formed what appears to be a double bottom (green) price pattern. Bottoming, rallying up to a point, selling back off to a similar bottom, and then rallying back up again forms the pattern. As with any price pattern, a confirmation of the pattern is needed.
WYNN confirmed the pattern by breaking up through the $120 resistance (blue) that was created by the double bottom pattern.
The Tale of the Tape: After trending lower last year, WYNN confirmed a double bottom price pattern. A long trade could be entered on a pullback down to the $120 level with a stop placed under that level.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT