WYNN Speculative Play on Bullish Engulfment Frenzy
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.
Click to view, click again to zoom
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.