Steve Wynn has a had a tough 2 years. The stock of his casino company Wynn (O:WYNN) has fallen from over $240 down to the current price around 80. That is tough. The last week it has looked like things might be looking up. But maybe that is not a good bet.
The chart below shows a long consolidation period that started in September and continues today. The move that began last week has taken the stock back up to the top of the consolidation range. Now they stock stands at the falling 200 day SMA.
The small candles of consolidation are a signal of digestion. Often this is a signal of consolidation before another move higher. The case for Wynn is that it is more like a bearish rising pennant than a bull flag. This can be seen as the price is slowly rising while the volume is falling. Add to this picture that the RSI is venturing into overbought territory and the MACD leveling and you have a set up for a short trade. Look for a fall back from resistance to trade short via puts or short sale.
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