Judgment Day For MGM Resorts(MGM)

Posted by barkand on May 19, 2011 under Classic chart patterns, Support / Resistance | Be the First to Comment

With the day of rapture upon us, it seems appropriate to take a look at the prospects for MGM Resorts (MGM).

Eternity is a long time, but the chart below covers only the last three years.

What we see is a very long ascending triangle. The top of the triangle, providing resistance around $17, has been touched four times: In October 2008, January 2009, April 2010, and again in January 2011.

Prices bounced off the bottom of the triangle most recently just last month, and are now headed back toward $17. The most likely outcome is for the price to break out through the top of the triangle. And when (or “if”) it happens, it could eventually reach the $25-28 range based on the height of the triangle and previous support before the triangle was formed.

Remember to take your shares with you to the afterlife.