All Bets Are Off For MGM

MGM has been trending upward from the lower bound ($9.00) of its multi-year trading band to the upper bound ($17.00) since the end of 2012. It has broken through the $16 resistance level and currently testing the $17.00 trading band resistance. The short term moving average, 20EMA, along with the 50 & 200 days SMA have been rising with prices trending above them. Here is an earlier post on MGM setup.

But, before the market open for trading on 8/6/13 (Tuesday), MGM will report its quarterly earnings. Depending on the quarterly results and/or the forward guidance, the price of its stock can react positively or negatively. One could avoid the adverse price reaction to earnings surprises by taking off all bets on MGM until after earnings have been reported. As always, trade your plan.

(click the chart to get an enlarge view)



Disclosure: No position in MGM