MGM runs into sellers around 16.95 for the third day in a row
MGM Resorts International (MGM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
MGM ended the month -2.21% lower at 16.80 after edging lower $0.02 (-0.12%) today on low volume, strongly underperforming the S&P 500 (1.54%). Trading up to $0.36 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 23rd, MGM actually lost -8.29% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MGM as at Jun 30, 2020):
Tuesday's trading range has been $0.68 (4.09%), that's far below the last trading month's daily average range of $1.44. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MGM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
The share closed back below the 50-day moving average at 16.85. The market ran into sellers again today around 16.95 for the third trading day in a row after having found sellers at 16.99 in the prior session and at 16.79 two days ago.
MGM Resorts shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 16.99 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for MGM Resorts. Out of 725 times, MGM closed higher 52.14% 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 55.59% with an average market move of 1.28%.