Sunday, March 11, 2012

Is It Time To Short WYNN

WYNN has completed a very clear upward double zigzag from its December low.  It is tempting to go short here.  The risk would be above the 3/2 high.  However, my past experience says this would not be a good choice.

While the daily chart shows a completed pattern, the weekly chart shows that WYNN is trading above its moving averages and the MACD has turned up.  It seems more likely that WYNN's upward correction could continue even if it is a corrective pattern.  If WYNN moves below the 2/14 low, the probability of success would be greater, assuming the broader market is also in decline at that time, so in my opinion it would be best to wait.

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