I came across the chart on Wynn Resorts Ltd. (WYNN) and the stock offers a very nice risk/reward setup to take advantage of.
Here’s the breakdown on the stock….
- Confirmed inverse head and shoulders pattern at $115.81 (Bullish)
- Well oversold at the moment and coming off of earnings (Bullish)
- On 1/24/12, broke through the downward trend-line at $117.60 off of the 7/19/11 highs (Bullish)
- Volume appears somewhat elevated during the recent sell-off propelled by its earnings report (Bearish)
- Previously unable to break through the $123.40 price resistance level (Bearish).
- Finding support at the 50-day Moving Average (Bullish)
- Entering into a historically favorable time period for the stock: February through April (Bullish).
