It looks like it is time to cash out of Boyd Gaming (BYD). A potential double top formation is pointing to lower prices in the weeks ahead.
The price of BYD has moved higher the past twelve months. The 200-day moving average line is pointed up, along with the shorter 50-day average -- see the daily chart, above. Prices are now edging below the 200-day average. Although prices they have risen, we can see twin peaks around the $21 area in November and again in April. Chartists often describe these peaks as a double top formation. Double tops are large top reversal patterns covering a number of months and often resulting in significant declines.
This daily chart shows no improvement in the On-Balance-Volume (OBV) line since November, and the line recently turned lower. Price momentum made a bearish divergence in March and April, as prices moved higher and the momentum study had equal highs.
In this weekly chart of BYD, above, we can see how prices more than doubled before the double top. The OBV line on this weekly time frame is still pointed up, but prices just closed below it. The Moving Average Convergence Divergence oscillator made a lower high, as prices made equal highs. This divergence between the price action and the MACD oscillator points to further price weakness in the weeks ahead.
Prices appear poised to weaken. A close below $16 and then $15 is likely to precipitate additional declines to the $12 to $10 area in the months ahead.