Jim Cramer pointed out the price action of Wynn Resorts (WYNN) to viewers of Mad Money Tuesday evening. He noted that WYNN rallied 8.7% Tuesday on seemingly no news. Let's check the charts.
In this updated daily bar chart of WYNN, below, we can see that the price of WYNN has been improving since late October. We can see that the 50-day moving average line crossed above the 200-day line at the beginning of November for a bullish golden cross buy signal.
The On-Balance-Volume (OBV) line has been improving since October to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator has spent most of its time above the zero line since November.
In this weekly bar chart of WYNN, below, we can see the past three years of price activity. On the left hand side of the chart we can see a large support zone where prices traded between $105 and $150 for several months. In early 2020 prices broke below the support zone and it has reversed roles to act as resistance. WYNN has traded more than half way through this $105-$150 resistance zone so it is likely to break through it.
The weekly OBV line has strengthened from last March to confirm the price gains. The MACD oscillator has narrowed in recent weeks but it is still pointed up.
In this daily Point and Figure chart of WYNN, below, we can see a potential upside price target in the $163 area. This would put prices above the resistance zone.
Bottom line strategy: The charts of WYNN are bullish and probably headed higher. Trade WYNN from the long side risking to $119.
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