MGM Resorts International traded in a large horizontal range mostly between $9 (U.S.) and $15 from 2009 to 2013 (dashed lines), rallied to $28.75 (A) and then stayed in another range made up of lower highs and support at $17.50 (dotted lines). The price action above the falling trend-line (B) signalled a breakout and the start of a new up-trend. The stock recently pulled back to its average (C) and now appears ready to resume the up-trend. Only a decline below $21.50 would be negative. Point & Figure measurements provide targets of $28 and $31. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.