MGM has just gone through its critical resistance level of $11.00 to give us a BUY SIGNAL. MGM has finally broken its major down trend and is now standing just below its 50 day MA which stands at $11.50. To confirm the BUY SIGNAL, MGM needs to stay above $11.00 tomorrow. When MGM goes over its 50 day MA, over $11.50 we will have a STRONG BUY SIGNAL. Based on the Stochastic which is heading towards overbought level, I think once MGM goes over its 50 day MA, it may go as high as just under $12.50 where its next resistance level, before pulling back to $11.50. To confirm the STRONG BUY SIGNAL after it goes over $11.50, the price in the following session would have to hold above this level. I think if MGM manages to go over $11.50 and holds up, it will manage to much higher in the near future despite many resistance levels to go through. The point is that if it manages to go over its 50 day MA and the price holds up, there will be a lot of support at $11.50, giving it less chance of falling back below and giving a SELL SIGNAL. I think a strong move up by MGM would probably coincide with the Dow Jones which looks like it could give us STRONG BUY SIGNAL soon. MGM is now looking to start a major up trend. The MACD also gave us a BUY SIGNAL a few sessions ago, which I usually find to be a better indicator for the longer term of the trend. I have now taken a long position with MGM again.
MGM - LONG
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