MGM Resorts Closing in to Resistance

Published on Tuesday, 07 February 2012 07:04 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of MGM Resorts International (NYSE:MGM) are trading very close to calculated resistance at $14.55 with the current price action closing at just $14.02 placing the stock near levels that make it difficult to buy.

MGM Resorts International (NYSE:MGM) has significant holdings in gaming, hospitality and entertainment, owns and operates 16 properties located in Nevada, Mississippi and Michigan. The company, through a joint venture, owns and operates the urban development City Center in Las Vegas Strip.

MGM's current stock range is defined by current calculated support defined at $12.71 and by the resistance level at $14.55, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for MGM Resorts, as the stock is well above support, however, as the stock pulls back towards $12.71 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $14.55 then traders will get an opportunity to enter MGM Resorts stock by establishing a position as the stock moves to a higher range.