Wynn Resports (WYNN) Getting Heavier By The Day
Wynn Resorts (WYNN) might be setting up an end of year short sale. The stock bounced higher in three waves after bottoming out at 14.50 in March. The 3rd wave topped in September 75 and gave way to a selloff that found support at the 200-day EMA at 51.The subsequent bounce printed a lower high, followed by 2 downswings to the 50-day EMA.
The stock broke that level on Thursday and has dropped into the 60 strike. This could mark the next downswing in decline that eventually tests the low at 51. Short sales are tough strategies in 2009 so its best to wait and see if we get a failed test near the gap top at 62. A rollover at that level could trigger enough momentum to drop price into the low 50s in a hurry.
December 21, 2009
• Posted in: TA
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