For today's chart we've chosen to take a look at Wynn Resorts Ltd. (Nasdaq:WYNN) because it is testing an interesting level of resistance. As you can see from the chart below, the bulls were unable to push the stock above the 200-day moving average. This failed break is technically significant because many traders will expect the bears to remain in control and it wouldn't be surprising to see the pullback continue. Those who are risk adverse will likely wait for the stock to close below the January 31 low ($106) to confirm the bearish momentum.
We expect that technical traders will set their stop-loss orders above Friday's high ($119.78) and will watch for a drop toward the short-term target of $96.25 (blue line). We've also noticed that the 50-day moving average has recently crossed below the 200-day moving average (illustrated by the yellow circle). This bearish crossover is a common technical sell signal and it is used by many to predict a long-term shift in the prevailing trend.