Casino operator Wynn Resorts Ltd. (WYNN) took it on the chin in multiple ways with the coronavirus pandemic. Its China properties were closed for a while along with those in the U.S. and the chart reflects the sentiment.
Notice the recent pull upward, but now we see a head-and-shoulders pattern tracing out, which is quite bearish.
Where does Wynn go? Probably down to the low $50s or so.
The recent heavy turnover as the stock turns down is bearish, and with the indices near all-time highs this stock is near the March lows. That is enough to say it's a bearish trade.
If short, put in a stop at $82 or so and ride it down to the $50s.
This commentary was previously sent to subscribers of Trifecta Stocks as part of its regular "Chart of Day" feature. Click here to learn more about this portfolio, trading ideas and market commentary product.
Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
