New York, May 8th (TradersHuddle.com) - Wynn Resorts (NASDAQ: WYNN) reported first quarter earnings that fell 19 percent, missing analysts' expectations. Profits fell to $140.6 million, or $1.23 a share, from $173.8 million, or $1.39, a year ago, excluding items, profit of $1.33 a share missed the $1.41 estimates. The company reported revenue of $1.31 billion for the first quarter of 2012, shy of analysts' forecasts for about $1.33 billion.
Price action on the stock was extremely negative, pushing through support and moving lower on the open. The stock sliced through the 50-day and 200-day moving average, gapping down nearly 7%. The stock also broke through a robust trend line that connected the lows seen in December and February that created a slope that came in near $120. The next level of support on WYNN is seen near $112, which coincides with the lows made in February. Resistance on the stock is seen near former support at the 200-day moving average at $123. Further resistance is seen at the 50-day moving average near $126.
Momentum on the stock is decisively negative with the MACD (moving average convergence divergence index) creating a sell signal on Friday, where the spread (the 12-day moving average minus the 26-day moving average) crossed below the 9-day moving average of the spread. The index turned negative simultaneously, reaching -1.22, which is the lowest level the index has reached during the past 6 months.
The RSI (relative strength index) which measures over-bought and over-sold levels is printing near 32, which is the lower end of the neutral range. During the past 6 months, the RSI has remained in neutral territory and has not printed an over-sold signal during that period. Volume on the stock spiked above the 50-day moving average, which confirms the downside breakdown.