Shares of Wynn Resorts, Limited (NASDAQ:WYNN) gained $2.62 or 2.65%, despite Friday’s market selloff, to close at $98.41 on solid volume. The stock has recovered nicely in the last few sessions since the recent low of 88.50 made in late August and has provided several meaningful signs of strength, by bouncing of its trendline support area around the 200EMA and then breaking above the 50EMA.
The current momentum clearly favors the bulls. As long as WYNN can remain over $91.03 (rising 200EMA that should be used as stop), I like the stock. On the flipside, if the psychological level of $100 is broken, look for $104.45-$105.16. Wynn Resorts could be a good stock for medium-term investment, based on its historical performance and from the daily technical indicators.
From the technical analysis perspective, the outlook for the stock is relatively bullish. The stochastic analysis is signaling a bullish outlook which can be further confirming in MACD and ADX charts. The RSI is also rising, supporting the optimistic view.
For the time being, I still favour the upside.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog.
All views and analysis belong to the author of this post.