Wynn Resorts (WYNN) Breaks Major Support Level

Wynn Resorts (WYNN) is a holding company, which engages in the design, development, and operation of destination casino resorts. It operates through the following segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor…

Take a look at the 1-year chart of Wynn (WYNN) below with added notations:

WYNN had been holding a major level of support at $120 (green) for most of this year. The stock ended up breaking below that support yesterday, which means lower prices should still be coming, overall. If WYNN were to rally back up to that $120 breakdown level, it may now act as resistance.

WYNN broke a key level of support at $120. A trader could enter a short position on any rallies up to or near $120 with a stop placed above the level. If the stock were to break back above the $120 level, a long position might be entered instead.

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!

Good luck!

Christian Tharp, CMT