Wynn Resorts (NASDAQ: WYNN) has been on a gradual decline since the 31st of May and continued to trade below a medium-term downside resistance line, drawn from the high of that day, until yesterday, when the stock finally broke the line. But to be more specific, the break happened during the pre-market trading. When the market opened, the share price was lifted by investors, confirming a daily close above the previously-mentioned downside line. This draws a somewhat positive picture, at least in the short-run. But one should remember that overall, the stock is still in the negative territory for the year.
In order to aim for a few higher levels, we would need to see WYNN breaking and closing a daily candle above 114.30, marked by the high of the 7th of November. This way, the path could be cleared towards the 120.50 hurdle, a break of which might set the stage for a further price-push to test the 127.00 barrier, which was the high of the 4th of October and the low of the 7th of September.
Looking at our oscillators, the RSI and the MACD, both are, in a way, supporting the above-discussed scenario. The RSI is now above 50 and continues to point higher. The MACD has bottomed on the 31st of October and since then, it keeps moving north, at the same time being above its trigger line.
That said, if the stock fails to push further up, changes its course in the southern direction and gets back below the aforementioned medium-term downside resistance line, this could ring the alarm bells in the bull-bloc. If the share price goes on and breaks below the 99.13-dollar price tag, we might then start looking at a possible test of the October low, which is near the 92.45 level, a break of which may invite more bears to the table. This is when the WYNN stock may get pushed towards the other possible area of support near the 82.50 obstacle. Slightly below lies another potential support zone at 79.70, marked by the low of the 9th of March 2016.
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