WYNN breaks back below 20-day moving average
Wynn Resorts Limited (WYNN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WYNN finished the week 0.71% higher at 78.25 after losing $4.90 (-5.89%) today on high volume, strongly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (WYNN as at May 22, 2020):
Friday's trading range has been $3.88 (4.77%), that's below the last trading month's daily average range of $5.01. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WYNN.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed back below the 20-day moving average at 81.60 for the first time since May 15th. When this moving average was crossed below the last time on May 12th, WYNN lost -2.40% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to May's high at 87.40, upside momentum could accelerate should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Its common bearish interpretation has been confirmed for Wynn Resorts. Out of 121 times, WYNN closed lower 58.68% 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 50.41% with an average market move of -0.06%.