MGM is currently standing at a critical level, and like I mentioned in my last MGM analysis, MGM would be faced with strong resistance at $11.00, and would need to go above it to give us a BUY SIGNAL and above its 50 day MA at $11.25 for a STRONG BUY SIGNAL. Indeed MGM's high today was exactly of $10.99, just below the critical $11.00 resistance level. A break above these levels would break the strong down trend. MGM is currently in a minor up trend. The MACD has started to give us a BUY SIGNAL but the move above the signal line is not significant enough to call it a clear BUY SIGNAL. This will only occur if MGM breaks above $11.00. The stochastic is indicating MGM could go higher. MGM will eventually break above $11.00, the question is when? It could happen tomorrow, or MGM may first pull back towards $10.50 or $10.00, and possibly move side ways below $11.00. However at the same time a move downwards would resume the strong down trend. I am currently long MGM with a decent return of over +10.00% and along with my Y-Swing 3.0 strategy I am looking to protect this gain and have tighten up my VTSO, in the event where MGM does not manage to go above $11.00 and $11.25. I would probably add to my position if MGM moved above these levels, and this would most likely have to be in accordance with a move higher higher by the Dow Jones which would also be giving a STRONG BUY SIGNAL with a move towards and above 10400. I definitely do not suggest taking any long position at the level where we stand but rather wait to see if MGM breaks up higher. For people like myself who are already long MGM with decent returns, MGM is a HOLD, for others it's a WAIT looking to see where MGM moves next. If you have already a decent return, you should have a stop loss order looking to protect your gains. Even if it gets triggered and MGM then starts moving higher again over $11.00, you can just get back in then even if it's a higher price than your exit point. The whole point of doing this is not to risk more gains than you should, because you cannot assume MGM will indeed bounce back up, as it could just move lower and lower at which point you would lose most if not all the gains you have accumulated.
MGM - LONG
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