Here is the long term technical thesis on Wynn Resorts (WYNN) (March 03, 2016)
WYNN
I want to look at Wynn ( NASDAQ:WYNN ) here. The last few days the casinos have been, lets just say, been in the news for various reasons. Well, I just want to look at this technically, here’s why: There are really three different phases (at least three that I’m going to talk about here) in the way a stock moves. It’s a downtrend, that’s here. A lot of times those downtrends end on BIG volume climaxes, one way or another. The bottom line is the activity. After a stock is just trading down, down, down, at some point the trading activity of the stock increases a lot as the last sellers, lets just call them the “regretful bulls,” finally just say, “You know what? Screw it, I’ve got to get out of this stock;” And then they dump it. Or, and this seems to be kind of what happened here, the stock starts drifting lower and it wasn’t on SUPER heavy volume, but then at some point, Boom! Buyers come for the stock and there’s a whole BUNCH of them.
And so what we’ve got here is, we’ve got a bottom, remember we got this downtrend here. Then we’ve got a bottom and so far, even on this bounce, all this is, you don’t get to see all this stuff yet, so all this big bounce is, is a move right back to the trendline. This is still in a downtrend, and then it continues down, and down, and down, and down, and down. Well look at what’s happening with this 50-day moving average (that’s the little red line that could), drifting lower and gradually then starting to drift sideways. So what we’ve got here is a base, and it’s kind of an interesting base, because in this base are actually two significant bottoms. So we’ve got this double bottom, there, there, and that’s why I’m kind of making a bigger deal up about this. I’m not looking right here at, okay this is a breakout from a base, it’s a breakout above the 200-day moving average at 80.00, now it’s up another 10 percent from there. You’ve got to buy, buy, buy this. This is not why I’m talking about this, it does look like the stock’s going higher. But I’m talking about this from a more profound and longer-term level. Look at the weekly chart, doesn’t it look like the stock is done going down?
And so my point is, even though Wynn ( NASDAQ:WYNN ), Las Vegas Sands ( NYSE:LVS ), they’re in the news, they’re ultimately going to peter out here. But that doesn’t mean that they’re going to continue to go down to new lows. I don’t think that’s going to happen. I think that any pullback that you get, not tomorrow, next week, week after that, but keep your eye on this stock. Set an alert, set a price alert for $80.00. Set a price alert for $75.00. If this stock falls, I’ll put one here just on my personal software at $80.00. I’m going to keep it there, just for a month. If this falls back to $80.00, now I’m going to start looking at this for a buy. Because I want to come back into a stock that’s formed a base, broken out of the base and then comes back to TEST that base. The deal here is, we see this coming out of a base, that’s great. Well if you’re not already in this you don’t get to take advantage or this money, it’s already been made. So wait for the pullback to a retest and THAT’S when you take this stock.
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