MGM closes lower for the 2nd day in a row
MGM Resorts International (MGM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MGM ended the week 0.51% higher at 31.52 after losing $0.28 (-0.88%) today on high volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 31.60, the stock confirmed its breakout through the prior session low after trading up to $0.61 below it intraday.
Daily Candlestick Chart (MGM as at Feb 14, 2020):
Friday's trading range has been $0.86 (2.71%), that's slightly below the last trading month's daily average range of $0.88. 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 slightly higher than usual for MGM.
Prices are trading close to the key technical support level at 30.76 (S1). Prices broke below the key technical support level at 31.72 (now R1), which is likely to act as resistance going forward. The last time this happened on February 7th, MGM actually gained 2.39% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for MGM Resorts. Out of 392 times, MGM closed higher 53.32% 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 56.89% with an average market move of 1.01%.