Two Signals For MGM Provide Rollercoaster Action
I had two trading signal trigger for MGM last week that could set the stage for some good up and down trading. My MACD overtraded signal fired on the daily chart on January 31, 2023 indicating the stock should move down over the next 10 trading days. This signal is accurate 94.297% of the 264 studied occurrences. There is a delay to the downside action that occurs during 3% of the successes. This means the stock moves upward before reversing course and obeying the signal's projected movement. The delay area for this specific signal is the white box on my chart above. The target box for the bearish movement is the larger green box to the downside.
On February 2, the closing price created a bullish signal based on my multi-timeframe indicator. This bullish signal indicates MGM will likely move to the upside in the next 10 and 25 trading bars. However, this indicate has a high delay rate at 62.791% over 10 days and 73.256% over 25 days. This means the stock moves down first prior to moving up. The typical delay area for this signal is the yellow box which overlaps the white and green boxes. I have also placed the likely bullish target box as the lighter blue outlined one.
We can use the delay box for the second signal to shrink the possible target area for the bearish signal. The overlap of the yellow box in the green likely indicates future downward movement will likely occur between 5 and 12 February with a bottom between 42.00-43.24. Once this bottom is in, the stock may then move upward to the bullish target box which begins around 46.63. This could provide an interesting trading setup if we buy on this dip.
As far as movement once or if we hit the bullish target box? There is a key resistance line (the dotted magenta line) around 51.17 which stood strong since November 2021. It was broken through to a new all-time high on July 31, 2023 up to 51.35, however, the stock has never closed above 50.77. We will see what happens with this ceiling. My modified wave theory does have this stock nearing a top for now, however it remains to be seen.
On February 2, the closing price created a bullish signal based on my multi-timeframe indicator. This bullish signal indicates MGM will likely move to the upside in the next 10 and 25 trading bars. However, this indicate has a high delay rate at 62.791% over 10 days and 73.256% over 25 days. This means the stock moves down first prior to moving up. The typical delay area for this signal is the yellow box which overlaps the white and green boxes. I have also placed the likely bullish target box as the lighter blue outlined one.
We can use the delay box for the second signal to shrink the possible target area for the bearish signal. The overlap of the yellow box in the green likely indicates future downward movement will likely occur between 5 and 12 February with a bottom between 42.00-43.24. Once this bottom is in, the stock may then move upward to the bullish target box which begins around 46.63. This could provide an interesting trading setup if we buy on this dip.
As far as movement once or if we hit the bullish target box? There is a key resistance line (the dotted magenta line) around 51.17 which stood strong since November 2021. It was broken through to a new all-time high on July 31, 2023 up to 51.35, however, the stock has never closed above 50.77. We will see what happens with this ceiling. My modified wave theory does have this stock nearing a top for now, however it remains to be seen.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
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