MGM has been falling from its Nov. 8, 13-year high
The shares of MGM Resorts International (NYSE: MGM) have been falling from their recent Nov. 8, 13-year peak of $51.17. Today, the stock is down 0.9% to trade at $45.66 at last check -- its lowest level in roughly a month. However, this dip has MGM pulling back to its 40-day moving average, after spending a significant period of time above it.
According to data from Schaeffer's Senior Quantitative Analyst Rocky White, six similar signals have occurred in the past three years. MGM Resorts stock enjoyed a positive return one-month return in 50% of those cases, averaging a 3.3% gain. From its current perch, a similar move would send MGM back up toward its recent highs.
A round of upgrades could provide tailwinds for the equity as well. Of the nine analysts in coverage, five carry a "hold" or worse rating on MGM, with four a "strong buy."
It's also worth noting that the security's Relative Strength Index (RSI) of 38 is nearing "oversold" territory, despite its recent positive price action. This means a short-term pop could be right on the horizon.