Stock Trading Predictions & Technical Analysis: MGM - Could and should pop once it closes over $14.00

Monday, September 21, 2009

MGM - Could and should pop once it closes over $14.00

MGM - WAIT

MGM has cooled down recently, but still remain strong, holding on to its gain and trading in a narrow range ($12.70-$13.70), building support at these levels. I think that in the coming days you could see the price movement become narrower and narrower or stay within this range, giving us a possible pennant or flag formation, however it's still to early to claim this. Once MGM does close above $14.00 remaining above this level for two days, this would be a big BUY signal, where MGM has little resistance to go through before it reaches $17.50 and $22.00-$23.00. MGM's 50 day MA also crossed its 200 day MA, which is very bullish for the long term. A break below $12.00 would be a very bearish signal and therefore a SELL. Right now we have to WAIT, but I feel very confident that the break will happen upwards, and MGM is just taking a pause for now after such a big move up.

4 comments:

traderSeptember 24, 2009 at 11:59 AM
Any update on MGM? ...can we buy @ 12?
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YoelSeptember 24, 2009 at 4:42 PM
MGM is currently at its support level near $11.50. For the moment MGM is still a WAIT, if it falls below $11.50, it's a SELL and it could then fall back as low as $9.00-$9.50. MGM will only be a buy when it manages to close above $14.00, and stay above this level for two consecutive days to have a confirmation. I will try to post this update with the chart of MGM, later tonight. I think we are starting to see signs of this never coming correction, or simply going through a healthy pullback; It's too early to say though.
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DBSeptember 24, 2009 at 5:54 PM
Yoel,

Never coming correction - agree with you. Looks like the sentiments are 50/50 meaning everytime we feel its time for a correction, it pulls back up..very unpredictable indeed. Would you please post your anlaysis on DOW too so that we can guestimate on where we are heading.
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YoelSeptember 24, 2009 at 6:54 PM
Yes I'll make sure to post something about the Dow Jones, where are we now and where could we be heading next. To be honest with you, although I'm long BAC & AAPL, I would like to be all in cash right now, and wait to see where the market is really heading.
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TECHNICAL INDICATORS

BUY SIGNAL: Indicates the possibility of the start of a new up trend or the continuation of the current up trend. This signal may be often given in the early stages of a potential new up trend that was preceded by a down or sideways trend. Such signals do not always succeed and may fail at time.

BUY: Indicates that the current up trend is already in motion and a BUY SIGNAL was already given earlier. A BUY does not necessarily indicate that the stock will continue higher from here, but simply that the stock is trending up. The further into the trend you decide to take a long position, the more risk you have of seeing it reverse back down sooner rather than later.

STRONG BUY SIGNAL: Indicates a stronger, more significant and reliable signal than a BUY SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG BUY: Indicates that the current up trend is already in motion and that STRONG BUY SIGNAL was already given.

SELL SIGNAL: Indicates the possibility of the start of a new down trend or the continuation of the current down trend. This signal may be often given in the early stages of a potential new down trend that was preceded by an up or sideways trend. Such signals do not always succeed and may fail at time.

SELL: Indicates that the current down trend is already in motion and a SELL SIGNAL was already given earlier. A SELL does not necessarily indicate that the stock will continue lower from here, but simply that the stock is trending down. The further into the trend you decide to sell a position, the more risk you have of seeing it reverse back up.

STRONG SELL SIGNAL: Indicates a stronger, more significant and reliable signal than a SELL SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG SELL: Indicates that the current down trend is already in motion and that STRONG SELL SIGNAL was already given.

HOLD: Indicates that traders who already hold this stock, should hold on as long as the trend persists. This signal is usually given during an up trend for which it would be considered too risky to take a long position at this point.

STRONG HOLD: Indicates that the current trend has been in motion for a while and rarely deviated away from the trend. Although the stock may continue higher, there may not be enough potential up side to trigger a BUY SIGNAL. This type of indicator usually means that the stock has very strong support levels which may have been tested but not broken.

WAIT: Usually given during a sideways trend for which we are waiting for a move that would trigger a BUY SIGNAL or SELL SIGNAL. This could also indicate uncertainty and the risk that would be taken if you were to take a long position at the current level. Taking a long position after giving a WAIT indicator is considered a gamble.