WYNN closes below its opening price unable to hold early session gains
Wynn Resorts Limited (WYNN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
WYNN ended Thursday at 71.51 losing $3.55 (-4.73%) on high volume, significantly underperforming the Nasdaq 100 (5.72%). Trading $12.05 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, WYNN actually gained 12.77% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WYNN as at Mar 26, 2020):
Thursday's trading range has been $14.10 (19.64%), that's far above the last trading month's daily average range of $9.78. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WYNN.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji.
Unable to break through the key technical resistance level at 80.63 (R1), the stock closed below it after spiking up to 83.86 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Wynn Resorts. Out of 66 times, WYNN closed higher 65.15% of the time on the next trading day after the market condition occurred.