MGM Resorts near Support

Published on Friday, 02 November 2012 06:56 Written by TradersHuddle Wire

New York, November 2nd (TradersHuddle.com) - Shares of MGM Resorts International (NYSE:MGM) ended the trading session close to calculated support at $10.10, a level that will raise the attention of traders looking for an entry point.

MGM's stock range is defined by its calculated support defined at $10.10 and by the resistance level at $11.50. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.

Traders wanting to establish a position should pay close attention to MGM's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $11.50 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of MGM Resorts International closed at $10.47 in the prior trading session.

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.