WYNN breaks below key technical support level
Wynn Resorts Limited (WYNN) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WYNN ended Thursday at 102.50 losing $1.83 (-1.75%), significantly underperforming the Nasdaq 100 (-0.07%). Today's close at 102.50 marks the lowest recorded closing price since December 31, 2018. Closing below Wednesday's low at 103.55, the share confirmed its breakout through the prior session low after trading up to $1.49 below it intraday.
Daily Candlestick Chart (WYNN as at Aug 15, 2019):
Thursday's trading range has been $3.56 (3.4%), that's slightly below the last trading month's daily average range of $4.32. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for WYNN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 102.82 (now R1), which is likely to act as resistance going forward. The last time this happened on August 5th, WYNN actually gained 0.69% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 95.61, downside momentum might accelerate should the stock break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Wynn Resorts. Out of 418 times, WYNN closed higher 50.24% 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 54.78% with an average market move of 1.27%.