Conclusion, Investment Implications, Strategy
Wynn Resorts, Limited (WYNN) is in the midst of a late April breakout higher from 5 weeks of sideways investor indecision at the recent lows. A sustained rise above the $74.90 area would confirm the validity of the breakout and target an eventual, additional 50% rise to $119.50 per share. This is an Asbury Momentum idea.
Analysis and Rationale
Wynn Resorts (WYNN))
Wynn Resorts, Limited (WYNN) designs, develops, and operates integrated resorts. The company was founded in 2002 and is based in Las Vegas, Nevada.
Chart 1 below plots WYNN daily since Q4 2019 along with its 200-day moving average, a widely-watched major trend proxy. The green highlights show that the stock is in the midst of a late April breakout higher from 5 weeks of sideways investor indecision at the recent lows. A sustained rise above the upper boundary of this indecision area, currently at $74.90, would confirm the validity of the breakout and target an eventual, additional 50% rise to $119.50 per share.
Chart 1
Table 1 below shows that, considering the aforementioned upside target and a protective stop placed below the $75.57 area, a long entry price of $79.50 would provide a 1:10.2 risk/reward ratio (risking $1.00 to make $10.20) with an initial risk of 4.9%.
Table 1
Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you in light of current market conditions.