Case Study - WYNN

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


  1. You are giving me too much credit. You deserve the credit. Although I did not take the trade, I totally agree with you this is a great case study. The way this is moving, there appears to be a lot of shorts stampeding towards the exits. I did not consider that as a possibility in my initial analysis. I should have because Wynn’s caiptalization is aggressive, which seems to attract shorts.
     
    #11     Mar 9, 2018
  2. vanzandt

    vanzandt

    Now we have Facebook. T/A thoughts?
     
    #12     Mar 23, 2018
  3. On the daily chart, FB is in an obvious downtrend. There is a recent breakaway gap to the downside with decisive penetration of “strong support”. For the last eight months, FB has traded fairly irratically on the daily charts. This has made it impractical to effectively use close stops, reducing one’s potential R/R ratio.

    However, there is an unusually high number of full bodied candles with small or even no wicks from the open. This implies one can trade FB’s open with a tight stop for a very favorible RR ratio. Combine your entry with decent sentiment and/or money flow indicators, and your win% should be above average.

    Because of increasing geopolitical tensions, FB fundamental cross currents, FB historical daily price instability, the current high volatility environment, and FB large number of full bodied candles, I believe the best opportunities with this issue are intraday.
     
    #13     Mar 23, 2018
    vanzandt likes this.
  4. Jackpot

    Jackpot

    Oh, I love me a good TA thread. I had an album of a few of my other charts here: and added FB and WYNN near the end. I also added SPX and the Nasdaq Composite daytrading charts (lines were generated 1 week in advance!) but the green SPX and COMP lines were created by Martin Armstrong's Socrates AI, not by me.

    FB: You can see that, on the weekly chart, the 'rising hammer' and touch on one of the trendlines implies a move back up. However, zooming in on the daily, you can see that it is unable to break the high 159.XX area. A close above that would imply a move into the high 16X area. I agree with MPS that daytrading FB is currently the best way to trade it for now.

    WYNN: The lower 2 diagonal lines are trendlines from a couple of years ago. The upper one is a resistance line. The lower horizontal line is when "resistance becomes support"- the old high is now the new low. The upper horizontal line is easily the most significant. That line has spanned years and a double top. The small diagonal line spanning just a few days is a resistance line. We can see that although it may appear as a bull flag, it has failed 3 times to breach the 183.XX level recently. I do not like flags that are too long or fall too much. Not drawn is the low price of that flag which coincides with the gap up, currently as support. Currently trading within a channel, closer to resistance. It is in a relatively neutral position, but leaning bearish. I do like 'combined' support/resistance areas- that is, when different types of support or resistance converge, giving a stronger move. So, were WYNN to drop into the low 160 area, it should find good support at that price. It would have to do so quickly as so to get to both the horizontal and trend lines, which does not seem particularly likely to me. If it went under and closed beneath the 3/2 low (rising hammer on trendline touch, an excellent entry), then it could move as low as 139, although it would probably hover at 153 for a bit.
     
    #14     Mar 31, 2018
    vanzandt likes this.