The price of MGM Resorts International (MGM) has been creeping higher from a February low, but the trading volume and price momentum study have been weakening during the rise.
In this daily chart, above, we can see MGM has stayed in a $16 to $24+ range the past 12 months. Prices are above the rising 50-day and 200-day moving average lines. The On-Balance-Volume (OBV) line is up from its February low, but it is not leading with a new high. In the bottom panel, we can see a bearish divergence the past two months as prices made higher highs and the momentum diverged with equal highs.
In this longer-term view of MGM, above, we can see prices have been in a sideways or neutral trend for more than a year. Prices are above the 40-week moving average line but the slope of the line is zero -- flat. The OBV line on this time frame is neutral. The Moving-Average-Convergence-Divergence (MACD) oscillator is improving from a cover-shorts buy signal. With prices struggling to rally on the daily chart and an uninspiring weekly chart, I would anticipate MGM might retest the $23-$24 area, but unless buyers are attracted with increased volume, we may be stuck at the buffet table instead of cashing in a big win.