The virus is sweeping through China, causing the country to recoil as it attempts to contain the spread. In an effort to slow the infection, many companies are temporarily closing, while quarantines are in place throughout various cities.
Macau gambling revenue is expected to take a hit, particularly after Chinese authorities said they would close casinos for half a month as a result of the coronavirus.
But you wouldn’t know it by looking at the stocks, which are all up on the day. Let's take a closer look at Wynn Resorts stock.
Trading Wynn Stock
While Wynn Resorts stock is rallying Tuesday despite the Macau news, it’s not as if it hasn’t suffered from the coronavirus. Earlier this month the shares lost 21% from a high of $153.41 to a recent low around $121.
The most impressive thing about Wynn’s recent price action? Aside from the Tuesday rally despite a clear dent in business, the shares held the 200-day moving average for several days amid the S&P 500’s correction and through a flurry of coronavirus headlines.
Support came into play at $121, while the shares closed over the 200-day in a span of several sessions. Once it cleared $126, it began filling back into the gap from last month.
Near current levels, Wynn stock faces a critical test. The 50-day moving average is near $133, while the 20-day moving average is near $134. Sandwiched between the two is the 61.8% retracement for the one-year range.
If Wynn stock can clear this area, it puts $145 back on the table. Above $145 and the stock can begin filling its first gap from the January high.
Should Wynn stock fail to reclaim the $135 mark and resistance holds, look for a pullback into the mid-$120s. If shares hold up over $126, that bodes well for the bulls. Below that mark puts the 200-day moving average back on the table.
Below $121 and the charts will suffer a blow. But for now, the setup is simple as Wynn stock faces a test between $133 to $134. Over this area and more upside can ensue. Below and a retest of the $126 level and the 200-day is possible.
Wynn Resorts is scheduled to report earnings on Feb. 6.