Case Study - WYNN

Discussion in 'Technical Analysis' started by vanzandt, Mar 4, 2018.

  1. vanzandt


    This is a good one for academic purposes here at ET.

    For the most part, all the dirty laundry thats going to present itself in this particular case is pretty much out there. I don't see any new surprises of significance forthcoming.

    Its been channeling around $165 for quite awhile now.

    Any T/A guru's wanna take a stab at what they see in the charts going forward?

    From a classroom perspective....It doesn't get any better than this. We have a highly visible, highly liquid stock thats poised for a big move. It would be interesting to see some charts with lots of lines and some intelligent prose to back up any and all conclusions.

    Right or wrong doesn't matter. It would just be nice to see some super T/A intellect (as opposed to me lol) take on the challenge... not for the bragging rights of "I called it", but more so to share what you see and what you think. I couldn't care less if its wrong or right. Its the thought process that counts.
    Last edited: Mar 4, 2018
  2. RRY16


    Wynn’s probably getting the tribe together to take it private.
  3. vanzandt


    Waaaaaay too expensive.
    From a BOD standpoint... change the name and let the dust settle.
    .....but thats not the point of this thread. For purposes here... its a generic stock.
    I wanna see some T/A regarding where it stands today.
  4. RRY16


    Get on a plane one time and go to the WYNN or Palazzo and you’ll see all the T/A you can handle.
  5. Wynn does have an interesting, high potential chart with generally rising prices with big gaps. I would be inclined to go long on positive price action such as a gap up or a close above the previous days high. My stop, especially in a long stock situation would be around a recent low.
    My objective would be all-time highs on this issue.

    Event risk, such as evidence of a trade war, would have a profoundly negatuve impact on stocks, especially economically sensitive ones. Even though Wynn is considered a gambling stock, I see their profits being vulnerable to a trade war related economic downturn.

    A reasonable way to play this, given the considerations above, might be an three month option bull spread risking a relatively small amount of trading capital. Going forward, one can add to this position as appropiate, or even buy back the short option side as the trade develops and we get more clarity on the trade situation.
    vanzandt likes this.
  6. TonePot


    160 seems to be a strong level for it. If it breaks it and holds could retrace to the 200
  7. zdreg


    your suggestion is fundamental analysis.:)
  8. vanzandt


    Up 6.5% today, bouncing off $180.
    That was a very nice break-out.

    Were the signals there?
    Its up on several news items from yesterday (divy increase, good results, board resignations)... but diehard T/A fans will tell you the chart can predict these things.

    Its too bad none of the in-house T/A guru's took the opportunity to jump on this thread with some studied observations.
    Either way, its still a great opportunity to study and monitor, whether one takes a position or not.
    Rest assured, there will be more WYNN's and EFX's in the future.
    Opportunities to make bank.

    "The pursuit of knowledge is more valuable than its possession".
    -Albert Einstein
  9. If one’s analysis supports a move back up to the $200 price level, it is likely there will be opportunities to get in with a favorable risk to reward after a correction.

    Wynn appears to be currently at resistance. Even if it penetrates this resistance area quickly, there will likely be a correction back to current levels anyway. If a new support level then developed at, say 180, and one enters at, say 185, the risk reward be 3 to 1 with a $200. target. This is not the 8 to 1 potential this trade offered on Monday, but still respectable.
    vanzandt likes this.
  10. vanzandt


    Good call. It did just what you said.
    It tore through the resistance and got up to 192.75. Its pulled back to 188ish
    #10     Mar 9, 2018