WYNN closes above its opening price after recovering from early selling pressure
Wynn Resorts Limited (WYNN) Technical Analysis Report for Mar 25, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, WYNN finished Wednesday at 75.06 gaining $8.50 (12.77%), significantly outperforming the Nasdaq 100 (-1.11%). Trading up to $6.62 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (WYNN as at Mar 25, 2020):
Wednesday's trading range has been $14.51 (20.21%), that's far above the last trading month's daily average range of $9.68. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for WYNN.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After spiking up to 79.70 during the day, the market found resistance at the 20-day moving average at 78.41. After having been unable to move lower than 64.55 in the previous session, Wynn Resorts found buyers again around the same price level today at 65.19. The last time this happened on March 13th, WYNN actually lost -24.43% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Wynn Resorts. Out of 61 times, WYNN closed higher 54.10% 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 54.10% with an average market move of 1.61%.