MGM finds support at 20-day moving average
MGM Resorts International (MGM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MGM finished Wednesday at 23.01 losing $0.73 (-3.07%), significantly underperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MGM as at Sep 16, 2020):
Wednesday's trading range has been $1.22 (5.15%), that's slightly above the last trading month's daily average range of $1.09. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MGM.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 22.56 during the day, the share found support at the 20-day moving average at 22.66. The last time this happened on September 11th, MGM gained 1.45% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 21.92 where further sell stops might get activated. As prices are trading close to September's high at 24.42, upside momentum could accelerate should the market mark new highs for the month. As prices are trading close to September's low at 21.86, downside momentum might speed up should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for MGM Resorts. Out of 59 times, MGM closed lower 57.63% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.54% with an average market move of -1.52%.