WYNN just pulled back to a historically bearish signal on the charts
Wynn Resorts Ltd (NASDAQ:WYNN) is on track for its seventh-straight daily gain, up 2.9% at $90.53 despite a price-target cut from J.P. Morgan Securities to $104 from $120. The stock could continue chopping lower, however, as it has since early August, given a bear signal flashing on the charts.
According to Schaeffer's Senior Quantitative Analyst Rocky White, WYNN has come within one standard deviation of its 60-day moving average for the eighth time in the last three years. Following the previous signals, the stock was lower one month later 57% of the time, averaging a 9.2% loss.
When speculating on Wynn Resorts stock, now looks like a good time to weigh in with puts. The security's Schaeffer's Volatility Index (SVI) of 29% ranks in the low 9th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.