All Hail $CZR! (October 15, 2020)


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This is Scott with your Chart of the Day. I want to take a look at Caesars Entertainment ( NASDAQ: CZR ). All hail charts that look like this; I like this chart and here’s why: Over the last month or so you can see that Caesars ( NASDAQ: CZR ) has really just kind of been going sideways. There is a nice sideways base of consolidation, nice tight price action, really kind of bunching together.

You can see how we have the 21-day and the 8 exponential really close to price. We have a rising 50-day moving average and we also have a little bit of complacency in this chart. You can tell that because we have the volume dropping off here. We did have 2 kind of big spikes of volume here and then after that kind of not much.

What I want to see here from Caesar ( NASDAQ: CZR ) is a move above a clearly defined level on volume. And that level that I want to watch is right around $58.00. You can see how that $58.00 level has acted as resistance in the past. We got above we broke below. We got above we broke below. Then we couldn’t even get above, so that is a clearly defined level of resistance that we can trade-off of.

So I want to set an alert just below $58.00 and take a look at it. And if you see a nice volume spike pushing price above that level I think that you could take that trade with a stop below the breakout level. Now, typically you could start a little bit of the stock here but the thing is the most recent support really is kind of down here at around 51.00.

If you are buying here within this range, we don’t know if it is going to chop around sideways leading up to earnings, which by the way, is coming up on November the 4th. So this could very well just kind of chop sideways and do nothing until earnings. So you don’t really, in my opinion, want to buy here, because (1) you have to give it about 7 percent room. And (2) we don’t know if the stock is going to break out after earnings, before earnings, or at all.

I think it is just worth having an alert on Caesars ( NASDAQ: CZR ) just under $58.00 and take a look at it.

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