MGM Watch

The casinos and entertainment company MGM Mirage (MGM) has moved into bull phase on the macd, a signal that runs counter to a deep downtrend that began in late April.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
MGM $12.38

At 11:41 a.m. Eastern

The phase switch has yet to be confirmed by the price, which has been meandering in the $12.15 to $12.85 range for six trading days.

The macd has been a consistant signal for MGM the past three months, with the exception of a single one-day bear to bull whipsaw that would have resulted in a heavy loss for less-than-nimble bears.

Cautious traders will wait for a breakout above $12.90 before entering, in particular because the macd has moved just a hair's breadth above the zero line; it could easily drop below before the end of the day, negating the signal.

Reversal Levels

• $14.12, +14.1%
• $12.89, +4.1% (20-day simple moving average)
• $12.84, +3.7%
• $12.38 <== You are here.
• $12.10, -2.3%

Once the nearest upside resistance is cleared, MGM has a clear shot to significantly higher price levels.

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Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.