Trading Idea: Is MGM Resorts close to Support?

Published on Wednesday, 30 January 2013 07:00 Written by TradersHuddle Wire

New York, January 30th (TradersHuddle.com) - Shares of MGM Resorts International (NYSE:MGM) are trading very close to calculated support at $12.32 with price action closing at just $12.62 and placing the stock near levels where traders will start paying attention.

MGM's stock range is defined by its calculated support defined at $12.32 and by the resistance level at $13.29, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

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 $13.29 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

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.