MGM Resorts International : MGM did not hit the jackpot
Entry price | Target | Stop-loss | Potential |
---|
US$22.48 |
US$0 |
US$23.4 |
+100% |
---|
The share is reaching an important level. We suggest caution because this point could stop the bullish trend.
From a fundamental viewpoint, the owner of the Bellagio displays significant difficulties. Its poor Surperformance rating underlines its unattractive valuation (P/E raio of 42.7x), its weak finances (leverage 5.62x) and its poor earnings quality.
Technically, the stock went through a period of rebound in recent sessions towards the USD 22.85 medium-term resistance. Moreover, the stock has been recently overbought. The technical rebound is about to end and this scenario suggests a return to a bearish trend
The graphical configuration argues to establish a short position at the current price. The fist objective will be fixed near the USD 19.50 short term support. This strategy should be protected by a stop loss above its resistance.
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