Wynn Resorts, Limited develops, owns, and operates destination casino resorts.
Take a look at the 1-year chart of Acuity (NASDAQ: WYNN) below with the added notations:
Over the course of the past two months, WYNN has made several gapping jumps in price. Commonly, the level of $180 (green) provides the support or resistance for those gaps. Now that WYNN seems to be pulling back, the $180 level should provide support yet again.
The Tale of the Tape: WYNN has a key level at $180. Traders could enter a long position on a pullback down to $180, with a stop placed under the level. However, traders that are bearish on the stock might have an opportunity to get short if WYNN were to break back below $180 again.
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