MGM Resorts stock retreated into a historically bullish trendline
Casino stock MGM Resorts International (NYSE:MGM) is higher today, last seen up 1.2% at $42.98. The equity yesterday pulled back 5% to close below the $42.50 area for the first time since early March, and is coming off its second-straight weekly loss with a 3.3% deficit for 2024. Now looks like the right time to bet on the security’s next move higher, however, as this most recent pullback placed it near a historically bullish trendline.
Specifically, MGM is trading within one standard deviation of its 126-day moving average. According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, six similar signals occurred over the past three years, and the stock finished higher 67% of the time, with an average 4.4% one-month gain. From its current perch, a comparable move would put MGM Resorts stock at nearly $45 per share.
Its also worth noting that MGM sits firmly in “oversold” territory, indicating that a short-term bounce might already be in the cards. This is per MGM Resorts stock’s 14-day Relative Strength index (RSI) of 33.5.