MGM closes within prior day's range after lackluster session
MGM Resorts International (MGM) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
MGM ended the week 8.65% higher at 28.00 after flat today, slightly outperforming the S&P 500 (-0.01%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MGM as at Jan 11, 2019):
Friday's trading range has been $0.46 (1.65%), that's far below the last trading month's daily average range of $1.07. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for MGM.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 27.27 (S1). Prices are trading close to the key technical resistance level at 28.19 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 28.95 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 27.27 where further sell stops might get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for MGM Resorts. Out of 732 times, MGM closed higher 50.68% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.32% with an average market move of 1.81%.