Bad news event causing a gap down 2 days in a row. Eventually WYNN will hit a bottom. Yearly low is 67.70. I like this stock and I am wondering if perhaps there has been a bit of an over-reaction to the news?
Once this finds a bottom, hopefully there will be some consolidation which I do not see as of yet. Rarely would price gap down to this extent then come shooting back up. Getting off the bottom or recovering from a gap down can be a long painful process for some securities. I haven't looked today at all of the casino stocks, but I did glance at LVS and it is not far from hitting a 3 year low. Just glanced, but possible Double bottom for LVS with a green candle today.
It can be awfully dark down here at the bottom, and bear flags may try to get you on the way back up as well as cats bouncing on you. LOL
A dead cat bounce occurs after a significant gap down. Most often there is a downtrend preceding the gap down. During a dead cat bounce, price will bounce up possibly due to folks hoping they bought at a low price, but is short lived, as those who are stuck in the security, sell during the bounce, which causes another decline.
A bear flag slopes up as a rule in opposition to the current downtrend. It represents a rather short rally up that once again, causes a price decline. There will be a pole, but bear flags occur after a sharp move down and the pole length can be used to get targets to the downside. But just as bull flags can break to the downside, a bear flag can break to the upside.
Trading bottoms can be rewarding, but can also be hazardous to you mental health. Patience can pay off when one does diving, waiting for a sign that price has truly bottomed. No recommendation.
Once this finds a bottom, hopefully there will be some consolidation which I do not see as of yet. Rarely would price gap down to this extent then come shooting back up. Getting off the bottom or recovering from a gap down can be a long painful process for some securities. I haven't looked today at all of the casino stocks, but I did glance at LVS and it is not far from hitting a 3 year low. Just glanced, but possible Double bottom for LVS with a green candle today.
It can be awfully dark down here at the bottom, and bear flags may try to get you on the way back up as well as cats bouncing on you. LOL
A dead cat bounce occurs after a significant gap down. Most often there is a downtrend preceding the gap down. During a dead cat bounce, price will bounce up possibly due to folks hoping they bought at a low price, but is short lived, as those who are stuck in the security, sell during the bounce, which causes another decline.
A bear flag slopes up as a rule in opposition to the current downtrend. It represents a rather short rally up that once again, causes a price decline. There will be a pole, but bear flags occur after a sharp move down and the pole length can be used to get targets to the downside. But just as bull flags can break to the downside, a bear flag can break to the upside.
Trading bottoms can be rewarding, but can also be hazardous to you mental health. Patience can pay off when one does diving, waiting for a sign that price has truly bottomed. No recommendation.
Comment:
Candle at close was a green hammer, so a Bullish candle after the second gap down. WYNN has had a rough few days but it can be positive to close with a doji or, even better, a bullish candle like a green hammer after a gap down. WYNN still needs confirmation, so just saying (o: