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November 10 Chart of the Day - Wynn Resorts

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Wynn Resorts (WYNN) shares were recently down about 9%, making them one of the S&P 500's biggest decliners.  On Friday Wynn Resorts reached a tentative deal with unions representing workers on the Las Vegas Strip, averting a strike. Price fell another 7% after the announcement.

So does news really have anything to do with a chart or is it technical analysis?

Let's take a look...

From a price action technical analysis perspective we can see on the monthly chart that price is well off its $249.31 all time high (ATH) and has been making a series of higher lows and lower lows for nearly a decade.

Trading around $84 earlier today we can see that if that pattern continues then the next lower low could really wreak havoc with investors.  

However, down on the weekly chart we can see that the bulls have been trying to break the decade long slump with their first attempt at setting a higher low.

All along though price has traversed a change control zone 16 times...

Change control zones are one of the five price action tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

More recently, price has criss crossed the $107 - $117 zone 7 times during the last 3 years. 

So if the bulls can hold serve by holding the higher low they set around $50 then price may very well want to gravitate back up towards the zone.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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