Trading Idea - Wynn Resorts Breaking Out?

Published on Friday, 23 July 2010 06:36 Written by TradersHuddle Staff

New York, July 23rd (TradersHuddle.com) - Shares of Wynn Resorts Limited (NASDAQ:WYNN) closed the trading session at $85.48 just above calculated resistance at $84.00 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Wynn Resorts Limited (NASDAQ:WYNN) owns and operates luxury hotels and destination casino resorts in Las Vegas, Nevada and in Macau, China. The resorts features guest rooms and suits, restaurants, golf courses, and on-site luxury automotive dealerships.

Wynn's stock was trading in a well defined range with support at $77.37 and resistance at $84.00, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Wynn's stock is still near the broken resistance level, traders will be focusing on $84.00 to see if the stock holds the breakout without rolling over.