Are There Technical Signs Of A Bottom For Casino Stocks?
Shares of Wynn Resorts, Limited (NASDAQ: 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.
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. (NYSE: 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 (NYSE: 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) (NASDAQ: 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
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.