WYNN Trade Idea -Long

I was asked to take a look at WYNN as a short term, long trade and I agree, I think WYNN has good probabilities of an upside move for a long trade and is at an area where the risk is pretty manageable (unless we see a massive gap, but even in that event your maximum position size should limit the risk there). WYNN also looks pretty darn ready to make that move.

Here are the charts...

 WYNN is a channel Buster, many times these will make a move higher before they make the next serious leg lower and that's probably the long trade that we are envisioning. These moves also tend to be volatile so there's likely a decent risk:reward ratio in the trade idea.

 If we use the 2 day Trend Channel a closing price of $112.65 breaks the uptrend, I'm not so sure how important that is to this particular idea being shorter in nature, but holding above that level certainly wouldn't hurt.

 Here are the gaps created recently in WYNN's gap up and down, this leaves a sort of Island top, we don't often see gaps like these left unfilled with HFT's in the market.


 The longer term bearish outlook is hard to disagree wit, but this is a 4 hour chart so this is a really longer term trend, this is the kind of signal in which if I had to make a trade today and not touch it for 6 months I'd choose to go short.

 The 15 min timeframe is more along the lines of what we are looking for in a trade like this, you can see a leading positive divergence before the gap up, that gap up was sold at the second red arrow and the gap down is NOT confirmed, the 15 min chart is still in a leading positive position; this fits well with a shorter term trade to the upside that at least fills the gaps, but probably moves a bit more than that.

 The 3 min chart is leading positive exactly where it should be in a flat range, remember what I said about quiet markets yesterday, they are usually up to something and this chart looks like they've been up to something-accumulating WYNN on the cheap.

 The 1 min trend is the most detailed, you can see the negative divergence at the top and a leading positive divergence at the gap down.

Zoomed in, we see a strong leading positive divergence right now and on the break of minor support this morning, I'd guess WYNN is tradable right in this area. If you look at the daily candles, thus far they are forming a Harami upside reversal, if they close that way and on some volume today, an upside reversal becomes even more probable.