Though I am loath to ever step foot in a casino myself, I do like a nice bottom and with the Dow Jones Gambling Index having broken out lately and the rally in China (Macau) I thought I’d take a closer look at a stock that a chart maniac of a subscriber, Joe, made me aware of a few days ago.
In reviewing its website I was in essence grossed out by the company, it’s products and its industry. But that is me. It is not necessarily you. Personally, I am willing to sublimate my revulsion for this stuff to a good chart. This one has turned the SMA 50 above the SMA 200, taken the inevitable hard pullback that so often accompanies such a “golden cross”, and held support at the SMA 50.
Here, let’s dial out a bigger chart so we can see the shape of the would-be bottoming pattern (click for a clearer view). It has a rounding shape to it and RSI and MACD look primed.
The weekly chart shows that the recent lows came from the 2016 low and a series of higher lows and higher highs is in play. Again here, RSI & MACD look very good. It feels like a seasonal play in progress. It could go wrong and fill the gap below 13 per the chart above, but that is a breakaway gap that came on volume and turned the trends up, so I don’t think it is likely near-term. A stop below the SMA 50 to suit could be used if trying this idea. I don’t really have an upside target per the chart but if I take it on I’d like to take it as far as my seasonal stock market view remains intact and/or the IGT chart remains intact.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.