Wynn Resorts has been tracing out a bottom over the past few months, and it may have been tested in January. The stock delivered a strong earnings report last week, bolted higher the following day, and then enjoyed an impressive follow-through with great turnover to boot. A series of lower highs has been broken significantly with the downtrend line now providing support. Ahead we see the 200 day moving average. If we reach it within the next few days, Wynn will be at a very overbought level and could see a pullback.
The MACD is now on a strong buy signal, and with the relative strength at overbought levels, more upside will make it much tougher to change direction. Turnover has been massive over the past few days – the stock has traded well over 5x the average day’s volume. That means one thing: Institutional buyers are coming back to the stock in a big way. There is a big gap to fill around the 100 area, which will happen eventually but not overnight. Wynn is one of my favorite stocks for 2016, and this latest move has it going in the right direction.
(Nasdaq: WYNN) Video Chart Analysis
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About Wynn Resorts
Wynn Resorts, Limited, together with its subsidiaries, develops, owns, and operates destination casino resorts. It operates in two segments, Macau Operations and Las Vegas Operations. The company operates Wynn Macau and Encore at Wynn Macau resort located in the Peoples Republic of China. As of February 13, 2015, its Macau resorts feature had approximately 284,000 square feet of casino space, which offered 24-hour gaming and a range of games with 498 table games and 625 slot machines, private gaming salons, sky casinos, and a poker; 2 luxury hotel towers with a total of 1,008 guest rooms and suites; casual and fine dining in 8 restaurants; approximately 57,000 square feet of retail shopping, including stores and boutiques; approximately 31,000 square feet of space for lounges and meeting facilities; recreation and leisure facilities, including two health clubs, spas, a salon, and a pool; and the Rotunda show. The company also owned and operated Wynn Las Vegas and Encore at Wynn Las Vegas resort with a total of 4,748 hotel rooms, suites, and villas; 232 table games; 1,849 slot machines; a race and sports book and poker room in approximately 186,000 square feet of casino gaming space, including a sky casino and private gaming salons