WYNN breaks back below 50-day moving average
Wynn Resorts Limited (WYNN) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
WYNN finished the week -4.03% lower at 104.99 after losing $7.42 (-6.6%) today, significantly underperforming the Nasdaq 100 (-3.3%) following today's NFP report. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (WYNN as at Dec 07, 2018):
Friday's trading range has been $9.76 (8.8%), that's far above the last trading month's daily average range of $5.03. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WYNN.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Wynn Resorts closed back below the 50-day moving average at 110.64. After having been unable to move lower than 104.18 in the previous session, the share found buyers again around the same price level today at 104.06. The last time this happened on November 30th, WYNN gained 9.50% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test November's nearby low at 96.00.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Wynn Resorts. Out of 218 times, WYNN closed higher 51.38% 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 55.05% with an average market move of 1.28%.