Benefitting from renewed interest in travel/leisure stocks, casino and hotel operator MGM Resorts has returned to the Green Favored Zone of the SIA S&P 500 Index Report from a short dip into the yellow zone. Yesterday, MGM finished in 113th place, up 15 spots on the day. Back in January, MGM Resorts (MGM) completed a bullish Ascending Triangle base which had formed over the last six months of 2022, signaling the start of a new uptrend. Following an initial rally up toward $46.00, the shares retested their $38.00 breakout point as new support and have turned upward in recent weeks.
In the last two days, MGM has rallied on increased volume, indicating renewed investor interest and yesterday, it broke out to its highest level since February of 2022, signaling the start of a new upleg. Initial upside resistance appears in the $50.00 to $51.00 area where a measured move, round number and previous peak cluster, followed by $54.00 and $62.00 based on measured moves. Initial support appears at the 50-day moving average near $42.00.
After base building through the second half of 2022, MGM Resorts (MGM) broke out in January. Following an initial rally, the shares spent the spring consolidating their gains, with support emerging at a higher low near $38.80. Climbing up out of a Bull Trap shakeout of weak hands, MGM recently completed a bullish Triple Top breakout to signal the start of a new advance.
The shares are currently approaching resistance between the $50.00 round number and the November 2021 peak near $51.20. a breakout to a new high would confirm the start of a new uptrend with next potential resistance near $56.50 based on a horizontal count and $64.95 based on a vertical count. Initial support appears near $44.65 based on a 3-box reversal.
With its bullish SMAX score increasing to 9, MGM has been exhibiting strength against the asset classes.
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