Don't Ignore This Chart

Ready to Roll the Dice with MGM?

Arthur Hill | 

MGM Resorts (MGM) is gearing up for a resistance challenge and the speculator in me expects a breakout. First and foremost, MGM is in a long-term uptrend with the September 7th spike marking a 52-week high. The 50-day EMA is also above the 200-day EMA and price is well above the rising 200-day EMA. 

The stock surged some 15% from mid October to late November with a move to the resistance zone. A triangle consolidation then unfolded and a consolidation after an advance is typically a bullish continuation pattern. A break above the early January highs would be bullish and signal a continuation higher. 


The indicator window shows MACD flattening out just above the zero line. This means the 12-day EMA is hovering above the 26-day EMA. Look for a move above .25 to signal an upturn in MACD and further the separation between the EMAs (12-EMA getting further above 26-day EMA). 

Bottom Line: The odds favor a breakout on the price chart because the long-term trend is up and a bullish continuation pattern is forming.  A close below 32.5 would negate this thesis. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London.
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