Shares of Wynn Resorts, Limited WYNN are surging following the company’s updated Q4 guidance suggesting in-line Macau EBITDA and better-than-expected Las Vegas revenue for the quarter.
The Macau numbers are particularly encouraging and are already being seen by some analysts as a sign that the Macau market is finally stabilizing.
After a nearly two-year decline by Macau-exposed casino stocks, could the bottom finally be in? Here’s what the charts look like now from a technical perspective.
Wynn
It certainly would have been better if WYNN’s recent dip to $49.95 hadn’t taken it below its $50.62 low from late September, but the recent low (and the 12 percent bounce since) is the second time the stock has demonstrated a healthy bounce near the $50 level. The double dip to this level could be an indication of a double bottom, especially if the stock trades back up to the low $70s in coming weeks.
Las Vegas Sands Corp. LVS
Sands’ chart shows a similar two dips in September and January that found support within one cent of each other at the $36 level. For now, a bounce above the $45 resistance level that served as the late-December high would be a bullish indicator for the issue.
MGM Resorts International MGM
Despite a weak start to 2016, MGM’s shares, on the other hand, already appear to be headed in the right direction. After bottoming at around $17 in mid-2015, MGM has been establishing higher highs and higher lows. Assuming the current downturn doesn’t break that trend, MGM will remain in a bullish channel.
Melco Crown Entertainment Ltd (ADR) MPEL
So far in 2016, Melco has remained above its September lows of $12.79, a bullish sign for the stock. However, the stock would need to climb above its December highs of $17.58 to establish a higher high and add support to the case that the bottom could already be in.
Disclosure: The author owns shares of Melco Crown Entertainment and Wynn.
Image Credit: Public Domain© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
