We took a look at Las Vegas Sands Corp. (LVS) earlier this week, writing that "prices look extended when compared to the 200-day moving average line, and with the MACD oscillator narrowing we could see LVS correct down to the $72-$70 area. Traders should be cautious about adding to long positions until we can see where buyers come back." With a few more days of price action let's check the charts again.
In this updated daily bar chart of LVS, below, we can see the same technical "issues" we pointed out the other day and a few more. Prices are still above the rising 50-day moving average line and still very extended above the rising 200-day average. The daily On-Balance-Volume (OBV) line is making a small bearish divergence with price -- the OBV has not made a new high this week with the price action. In the lower panel we can now see a small bearish divergence between weakening momentum versus still strong prices.
In this weekly bar chart of LVS, below, we still have positive clues. Prices are above the rising 40-week moving average line. The weekly OBV line is confirming the price movement and the Moving Average Convergence Divergnce (MACD) oscillator is bullish.
In this Point and Figure chart of LVS, below, we can see a little distribution (read selling) on the chart. Prices have met a price target. A decline to $75.21 could start to weaken this chart.
Bottom line: With the futures on the major averages showing weakness this Groundhog Day I want to continue my cautious guidance on LVS. Prices still look vulnerable to a decline back to the $72 area.