MGM pushes through Thursday's high
MGM Resorts International (MGM) Technical Analysis Report for Aug 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MGM finished the week 14.61% higher at 21.81 after gaining $0.47 (2.2%) today, notably outperforming the S&P 500 (-0.02%). Today's close at 21.81 marks the highest recorded closing price since June 9th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 21.68, the stock confirmed its breakout through the prior session high after trading up to $0.17 above it intraday.
Daily Candlestick Chart (MGM as at Aug 14, 2020):
Friday's trading range has been $0.89 (4.2%), that's slightly below the last trading month's daily average range of $1.01. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MGM. Prices continued to consolidate within a tight trading range between 20.69 and 21.95 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on August 7th, MGM gained 13.77% on the following trading day.
After having been unable to move above 21.68 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 21.85.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 20.69 where further sell stops might get activated. Trading close to June's high at 23.84 we could see further upside momentum if potential buy stops at the level get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for MGM Resorts. Out of 286 times, MGM closed higher 52.10% 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 56.64% with an average market move of 0.95%.