MGM Resorts International
A good example of just such a clean, confirmed break comes from MGM Resorts International (MGM - Get Report), 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.
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