During the Mad Money "Lightning Round" Friday night, Jim Cramer commented about Wynn Resorts Ltd. (WYNN) "Without Steve Wynn, we're leaving it alone." To the point. Let's take a look at the charts and indicators for WYNN and see who else may be leaving it alone.
In the daily bar chart of WYNN, below, we can see that prices have been cut in half since May. Prices turned down in early June to break the cresting 50-day moving average line and then the slope of the line quickly turned bearish. By August the slope of the 200-day moving average line was rolling over and in early August we can see a death cross as the 50-day line moved below the 200-day line.
The daily On-Balance-Volume (OBV) peaked in January and made a lower high in June when prices retested the January zenith. The declining OBV line tells us that sellers of WYNN have been more aggressive with heavier volume being traded on days when prices have closed lower.
In the lower panel is the Moving Average Convergence Divergence (MACD) oscillator, which has been in bearish territory below the zero line since early June.
In the weekly bar chart of WYNN, below, we can see the price action going back four years. I went back longer than usual to show the old resistance area from $110-$80. If prices make a weekly close below $95 -- the midpoint of the now support zone -- they are probably going to break the support zone. Next potential support lies in the $70-$50 area. Prices are well below the bearish 40-week moving average line.
The weekly OBV line has been in a decline all year and the MACD oscillator is still very bearish.
In this Point and Figure chart of WYNN, below, we can see a potential downside price target of $78.54.
Bottom-line strategy: WYNN could hold in the $100 area for a while but the persistent downtrend this year suggests we will see further declines ahead.