Wynn Resorts, Limited develops, owns, and operates destination casino resorts. As of February 15, 2017, the company’s Wynn Macau resorts had approximately 284,000 square feet of casino space. It also owned and operated Wynn Palace resort with a total of approximately 420,000 square feet of casino space. The company’s Las Vegas resorts offer approximately 189,000 square feet of casino space.
Take a look at the 1-year chart of Wynn (NASDAQ: WYNN) below with added notations:
WYNN had been rallying steadily since the end of last year and eventually formed a key resistance level at $140 (green) during the summer, which was also the stock’s 52-week high resistance barrier. The stock finally broke above that level, and moved higher as expected. Now that WYNN is pulling back again, traders could look to enter a position at a more desirable price.
The Tale of the Tape: WYNN broke its 52-week resistance at $140. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $140 could negate the forecast for a move higher.
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