Wynn Resorts Can't Catch a Break as Its Shares Sag Despite Earnings Beat
A tentative labor agreement also isn't helping the stock.
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Casino operator Wynn Resorts WYNN is having a run of bad luck on its charts as its stock was trading lower in the pre-market here on Friday despite an earnings beat Thursday evening and the company reaching a tentative, five-year labor agreement with unions representing hospitality workers in Las Vegas. Let's check out Wynn's charts to see what may be ahead for its shares.
In this daily bar chart of WYNN, below, I can see that prices have been in a losing streak since May, when I last reviewed the stock. Prices trade below the declining 50-day moving average line and below the declining 200-day line. The On-Balance-Volume (OBV) line peaked in May and has slowly declined since then, telling us that sellers of WYNN have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator has been below the key zero line since August.
In this weekly Japanese candlestick chart of WYNN, below, I can see that the most recent weekly candle pattern shows us a large upper shadow as traders rejected the highs. Prices already trade below the declining 40-week moving average line and today's lower opening should refresh the downtrend. The weekly OBV line is pointed down and the MACD oscillator is below the zero line in bear territory.
In this daily Point and Figure chart of WYNN, below, we don't have the pre-market action plotted. The chart shows an upside price target, but today's expected move lower should prompt the software to generate a bearish target.
In this weekly Point and Figure chart of WYNN, below, I used a five-box reversal filter and here I can see a potential downside price target in the $46 area.
Bottom line strategy: The best bet or strategy on WYNN is stand aside and let the stock fall.
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