NEW YORK (TheStreet) -- Shares of Wynn Resorts (WYNN) - Get Report surged on Thursday following the casino operator's latest earnings report. The stock finished the session more that 8% higher on its heaviest upside trade of 2015.

Wynn's performance on Thursday put it near the top of the S&P 500 gainers and may signal the start of a powerful relief rally.

Wynn has been working through a healthy bottoming process for months. Back on April 29, the stock was hit hard after reporting disappointing first-quarter results. Shares fell more than 16% on the news as volume jumped to its heaviest level in three years. This collapse opened the final down leg, but as the stock continued to drift lower throughout May, downside momentum appeared to have peaked on April 29. As May came to a close, it was becoming evident that Wynn was bottoming out with the help of a major divergence in its moving average convergence/divergence indicator.

This month, Wynn is working on a higher monthly low after recording four straight lower lows. Despite the improvement, investors headed into Thursday's report very cautious. Yesterday the stock closed at new July lows on accelerating trade while finishing the day right at its intraday low. This weak action has been completely reversed and may have enough momentum built up to carry the stock past the July highs at $112.

Wynn is not out of the woods, but the setup is improving. A close above $112 would clear both the June and the July highs and would go a long way in confirming that a major base has been left behind. As long as Thursday's low at $99 is not violated in the near term, WYNN should be considered a buy on weakness.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.