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Chart Wars: Will Las Vegas Sands Or Wynn Resorts Inventory Stage A Greater Rebound Following Macau Invoice?

On Friday, Las Vegas Sands Corp (NYSE:LVS) and Wynn Resorts Ltd (NASDAQ:WYNN) gapped up over 12% and 8%, respectively, off their Thursday’s closing price after bullish news for the casino industry came out of Macau.

Until Friday, both stocks have been trading in steep downtrends with Las Vegas Sands plummeting about 50% and Wynn declining 45% since early March 2021 when the stocks looked to be rebounding from the March 2020 market crash caused by the onset of the COVID-19 pandemic.

Las Vegas Sands is currently trading down near its pandemic lows once again and Wynn has been unable to gain any traction to make a trend change. On Friday, however, the gap ups helped both stocks to confirm an uptrend on both their daily and weekly charts, which could indicate bullish sentiment will return to boost the stocks up over the long-term.

It should be noted, however, that events such the general markets turning bearish, negative reactions to earnings prints and negative news headlines about a stock can quickly invalidate bullish patterns and break outs. As the saying goes, “the trend is your friend until it isn’t” and any trader in a bullish position should have a clear stop set in place and manage their risk versus reward.

See Also: 30 Stocks Moving In Friday’s Mid-Day Session

In The News: Las Vegas Sands and Wynn’s higher prices on Friday were propelled by the release of a new Macau gaming bill, which states the number of Macau gaming licenses will remain capped at six. The bill is sure to calm investors who felt weary the government may intervene or disrupt the current Macau casino industry.

The Las Vegas Sands Weekly Chart: During the weeks of Nov. 29 and Dec. 20, Las Vegas Sands printed and reacted bullish to a weekly bullish double bottom pattern and during the Dec. 27 and Jan. 3 traded mostly sideways to consolidate the move higher.

  • The price action on Friday allowed Las Vegas Sands to print a higher high above the Nov. 8 weekly high of $43.23, which potentially sets the stock into a weekly uptrend. Traders should note; Las Vegas Sands will eventually need to confirm the trend by printing a high low above $33.83 and it would be ideal if the lower gap filled on the next higher low.
  • On Friday, Las Vegas Sands’ daily volume was measuring in at more than quadruple the 10-day average with over 33 million shares having exchanged hands by early afternoon compared to the average of 7.72 million. This indicates a high level of investor interest.
  • The stock has resistance above at $43.23 and $45.13 and support below at $41.53 and $39.02.

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The Wynn Chart: Wynn has been trading in a weekly uptrend since the week of Nov. 29 but on Friday confirmed the trend was still intact by printing a higher high above the weekly Dec. 29 high of $90.49.

  • Like Las Vegas Sands, Wynn had higher than average daily volume with over 7 million shares exchanging hands compared to the 10-day average of 2.65 million.
  • Also like Las Vegas Sands, Wynn will eventually need to print a weekly higher low and it would give bulls more confidence going forward if the lower gap was filled during the process.
  • Wynn has resistance above at $93.15 and $95.70 and support below at $88.91 and $86.48.




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