NEW YORK (TheStreet) -- Wynn Resorts (WYNN) is ramping Thursday on very heavy trading. Positive comments from Credit Suisse analysts on the improved traffic trends in Macau are giving shares quite a spark. This breakout-type move is setting up WYNN up well for a strong rebound.
Shares are up over 7% but have a great deal of ground to regain. A recovery move back up to the March low near $121 would mean an additional 12% of upside from current levels. This certainly looks likely considering the powerful MACD pattern that has been in place since late last year.
Wynn left behind a huge breakout gap this morning. If this gap at $102.80 were to be filled in the near term, it would provide a very low-risk entry. Just above is the stock's 13-day moving average near $104. If Wynn needs to work through a pullback, a dip down to the $103-to-$104 area would be an opportunity to buy.
A rally off the fresh 2015 lows that were hit on the last day of May could lift shares sharply higher. Wynn has had an awful year and a half and has a great deal of ground to recover. From the 2014 peak the stock is off roughly 60%. The loss from the 2015 high is over 35%. This damage has been excessive, and even with a 20% rally from current levels, the stock would only be retesting its March low.Click here to see the below chart in a new window.