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.
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Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.