Boyd Gaming Corp. engages in the management and operation of gaming and entertainment properties. It operates through the following business segments: Las Vegas Locals, Downtown Las Vegas, Midwest and South, Peninsula, and Borgata. Its portfolio includes hotels, casino, breweries, resorts, and spa.
Take a look at the 1-year chart of Boyd (NYSE: BYD) below with added notations:
BYD has been in an overall uptrend since November. However, the stock has recently stalled, as BYD has hit the same resistance at $26 (red) a few times. Now, the stock is sitting back at that level again. A solid close above the $26 should lead to another leg higher for BYD.
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The Tale of the Tape: BYD has a 52-week resistance at $26. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT