Louis Navellier’s #1 Stock for 2022

On October 20, the man who recommended Google before anyone else will reveal his #1 stock pick for 2022 — for FREE — ticker symbol and all — in a special presentation.

Wed, October 20 at 4:00PM ET

3 Casino Stocks That Could Bounce Higher

casino stocks - 3 Casino Stocks That Could Bounce Higher

Source: Roxanne Ready via Flickr

The ranks of recovering stocks have grown throughout January. Some boast strong “V-shaped” rebounds that make it challenging to chase with new entries. Others, like gaming and casino stocks, offer more traditional bottoming patterns that could spell future profits for patient buyers.

Gaming stocks were laid low last year with many falling 50% from their peaks. But, as we’ll illustrate with today’s selections, selling pressure has dried up, and buyers are beginning to emerge.

Chart watchers seek signs of slowing momentum, stability, and then upward reversals to help confirm beaten-down stocks are turning a corner. All three of today’s picks carry these positive characteristics. What’s more, they have clear horizontal resistance levels to build trades around.

Without further ado, here are three casino stocks reversing higher.

Las Vegas Sands (LVS)

Click to Enlarge
Source: ThinkorSwim

From $81.45 to $47.39, last year’s bear market spanned two terrible quarters for Las Vegas Sands (NYSE:LVS). But this year, things are looking up. Right out of the gate LVS stock rallied back above its 50-day and 20-day moving averages, and it has exhibited sufficient stability to flatten out both smoothing mechanisms.

With the base built over the past three weeks, LVS sits one breakout away from completing its three-month rounded bottoming formation. Today’s poor response to last night’s earnings is pulling the stock back from resistance, but the damage has been minimal.

Watch for a break above $58.50 resistance, then deploy bullish trades.

Wynn Resorts (WYNN)

Click to Enlarge
Source: ThinkorSwim

The action in Wynn Resorts (NASDAQ:WYNN) has mirrored Las Vegas Sands. All told, the descent hacked 56% off its share price. This year’s bullish reversal was preceded by signs that the downtrend was slowing. The RSI bullish divergence is shown in the accompanying chart.

Unlike most stocks which have been bid up to overbought extremes alongside the broad market, WYNN stock has been resting for three weeks. And that sets up a compelling breakout pattern that could see strong upside follow through once resistance is finally felled.

Watch for a break above $120 to confirm and complete the multi-month bottoming formation. Wynn Resorts is scheduled to report earnings on Jan. 30.

MGM Resorts (MGM)

Click to Enlarge
Source: ThinkorSwim

MGM Resorts (NYSE:MGM) scored quite the comeback this month. Since carving out a 52-week low at $21.62 around Christmas, MGM stock has rocketed back 31%. Stiff resistance at $29 finally stopped the ascent, but the price action since then has been promising.

Rather than falling sharply amid profit-taking, MGM is treading water, absorbing any supply coming into the market like a champ.

The high base that has formed leads me to believe more upside is in the offing. Watch for a break above $29 to confirm, then consider deploying bullish trades.

As of this writing, Tyler Craig didn’t hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to protect your portfolio against a market crash.

Article printed from InvestorPlace Media, https://investorplace.com/2019/01/casino-stocks-to-buy-bounce-higher/.

©2021 InvestorPlace Media, LLC