MGM pushes through Friday's high
MGM Resorts International (MGM) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
MGM ended Monday at 17.80 gaining $0.62 (3.61%), strongly outperforming the S&P 500 (0.38%). Closing above Friday's high at 17.52, MGM Resorts confirmed its breakout through the prior session high after trading up to $0.52 above it intraday.
Daily Candlestick Chart (MGM as at Jun 01, 2020):
Monday's trading range has been $0.92 (5.31%), that's slightly below the last trading month's daily average range of $1.06. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MGM. Prices continued to consolidate within a tight trading range between 16.72 and 18.13 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 20th, MGM actually lost -3.09% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 18.84 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 16.72 where further sell stops could get triggered.
Among the four 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 375 times, MGM closed higher 52.53% 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 54.93% with an average market move of 0.58%.