MGM Resorts International
A good example of just such a clean, confirmed break comes from MGM Resorts International (MGM), a stock that made our list of Must-See Charts last week. At the time, solid earnings data had just propelled MGM above its resistance level at $14, and I recommended waiting for confirmation that day that MGM was able to hold above $14 and then considering a protective stop just below that resistance level.
Sure enough, shares opened right above that resistance level the next day, giving traders an opportunity to make more than 7% on the trade in the days since (it traded as high as $15.15 yesterday). MGM is a good example of why conditional triggers are so essential for traders -- by waiting for evidence that MGM could hold $14, we made sure that excess supply of shares at that price had been absorbed by the market, and acted on a high-probability trade.
To see this week's trades in action, check out the High Volume Technicals portfolio on Stockpickr.-- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV