MGM pushes through Tuesday's high
MGM Resorts International (MGM) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
MGM ended Wednesday at 31.77 gaining $0.15 (0.47%) on low volume, slightly underperforming the S&P 500 (0.63%). Closing above Tuesday's high at 31.69, the stock confirmed its breakout through the previous session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (MGM as at Dec 04, 2019):
Wednesday's trading range has been $0.27 (0.85%), that's far below the last trading month's daily average range of $0.44. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for MGM.
Prices are trading close to the key technical support level at 31.60 (S1).
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 32.17 where further buy stops could get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for MGM Resorts. Out of 380 times, MGM closed higher 51.05% 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 54.47% with an average market move of 0.59%.