WYNN breaks below Thursday's low
Wynn Resorts Limited (WYNN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
WYNN ended the month -2.77% lower at 72.43 after losing $3.99 (-5.22%) today, notably underperforming the Nasdaq 100 (1.78%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 74.70, the stock confirmed its breakout through the previous session low after trading up to $3.20 below it intraday.
Daily Candlestick Chart (WYNN as at Jul 31, 2020):
Friday's trading range has been $4.50 (5.92%), that's slightly above the last trading month's daily average range of $4.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WYNN.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, WYNN actually gained 3.79% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 70.02 where further sell stops could get triggered. Further selling might move prices lower should the market test June's nearby low at 67.54.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for Wynn Resorts. Out of 310 times, WYNN closed lower 56.77% 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 nine trading days, showing a win rate of 48.06% with an average market move of 0.21%.