The WYNNing Swing-Trade
I came across the chart on Wynn Resorts Ltd. (WYNN) and the stock offers a very nice risk/reward setup to take advantage of.
Here's the breakdown on the stock....
Confirmed inverse head and shoulders pattern at $115.81 (Bullish)
Well oversold at the moment and coming off of earnings (Bullish)
On 1/24/12, broke through the downward trend-line at $117.60 off of the 7/19/11 highs (Bullish)
Volume appears somewhat elevated during the recent sell-off propelled by its earnings report (Bearish)
Previously unable to break through the $123.40 price resistance level (Bearish).
Finding support at the 50-day Moving Average (Bullish)
Entering into a historically favorable time period for the stock: February through April (Bullish).
While there are a few negative factors to be concerned with, overall, I think that WYNN has a lot to offer. And like any trade, you need to make sure that you guard yourself against the possibility that this stock goes against you and doesn't work out the way you'd expect.
So here are the trade parameters I'd use.