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WYNN Speculative Play on Bullish Engulfment Frenzy
Posted by Blain Reinkensmeyer
December 28, 2007 at 2:00 pm
Wynn Resorts (WYNN) stock has seen now two bullish engulfments in the last seven trading days, one on December 19th, and another on the 26th. With the stock trading around $116 today going long never looked so tempting.
WYNN peaked back in October when the stock hit a high of $176.14 and since has been sold off as Leisure Gaming Industry Group has fallen out of favor. Here in December the stock has traded under $120 for the first time since August, finding support at its 200 day moving average.
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Is a turnaround next? Back to back bullish engulfments are rare to see which makes WYNN a close watcher. If the $110.50 low on December 19th is undercut then I would run for the hills, until then WYNN stock makes for a decently priced speculative buy.
WYNN and LVS have still had nice runs on a long term basis, but are far below their highs. I think they both look pretty good for a short term trade, but I wonder if the valuation is still too high.