Bullish Head And Shoulders Forms On Wynn Resorts (WYNN)
Wynn Resorts Ltd. is a holding company, which engages in the design, development, and operation of destination casino resorts. It operates through the following segments: Wynn Palace, Wynn Macau, Las Vegas Operations, Wynn Interactive and Encore Boston Harbor.
Take a look at the 1-year chart of Wynn (WYNN) below with the added notations:
Chart of WYNN provided by TradingView
Over the past several months, WYNN has formed an inverse head and shoulders reversal pattern. The head (H) and the shoulders (S) have been noted to make the pattern more visible. The stock’s neckline resistance is sitting at $70 (green). WYNN would confirm its H&S by breaking up through the neckline.
The Tale of the Tape: WYNN has formed an inverse head & shoulders pattern. A long trade could be entered on a break through the $70 neckline, with a stop set below that level.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT
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