Is MGM Resorts Expecting Resistance Soon?
Published on Wednesday, 03 April 2013 07:48 Written by TradersHuddle Wire
New York, April 3rd (TradersHuddle.com) - MGM Resorts International (NYSE:MGM) ended the trading session at $12.48, near its 50 day moving average set at $12.78. MGM's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $12.00 and resistance at $13.34. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in MGM Resorts, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.
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