We’ll start with the broader picture trend on the Monthly Frame:
Just based on monthly closing highs, the key simple level on the Monthly Chart is the current $160 per share shelf.
However, the rising 50 week EMA intersects $150 as a likely downside target should the price floor fail.
Notice the two prior sell-swings (2007’s reversal and 2011’s pullback) and compare the current retracement.
While the trend is up – and WYNN has more than increased 10 times from the $20.00 low – price does tend to swing from pro-trend to counter-trend phases (we’re seeing a counter-trend phase now on the higher frame).
Of course, that counter-trend on the monthly chart is a DOWNTREND on the Lower Frames:
WYNN is crafting a series of lower lows and lower highs and retracing past the 50% “half-way” Fibonacci Level.
The $170 level (highlighted) failed and price is now open to fall through the pocket toward the confluence of the 61.8% Fibonacci Level and 200 week SMA near $150.
Keep in mind that $150 is also the rising 50 month EMA – a multi-indicator simple confluence.
Finally, we have the clear downtrend/sell phase as seen on the Daily Chart.
Note the prior sideways highlight from May until the September breakdown under the $195.00/$200.00 per share level.
The September sell-off sent price toward the $175.00 support shelf when another smaller range developed between $175 to $190.
This week, price collapsed down under $175 and may be trading down first into the $160 level and then potentially the $150 higher frame support confluence.
For objective (non-biased) planning, keep in mind that a firm rally back above $175 could invalidate the downside targets and spring a BEAR trap.
If shorting this stock, be aware of the trap outcome (which targets $190 if firmly above $175).
Keep watching these levels and planning your real-time strategies accordingly.
This article is brought to you courtesy of Corey Rosenbloom from Afraid to Trade.