Making Financial Headlines · Page 8
MGM's 17-Week Slide Gives a Possible Bounce an Exceptionally Long Runway
· New York time
MGM Resorts shares could be poised for a rebound after falling for 17 consecutive weeks, according to technical analyst Katie Stockton. Her assessment turns a lengthy losing streak into a question about whether the stock might recover, not a promise that it will. Technical analysis examines patterns in market prices, and a prolonged decline can attract attention from analysts looking for a possible change in direction. The streak itself is the established fact; a bounce remains Stockton's assessment of what could happen next. MGM operates casinos and resorts, businesses connected to travel and customer spending. Investors considering its shares can look at the company's business as well as the pattern on the chart, which records how the stock has traded rather than guaranteeing its next move. The casino comparison is difficult to resist, although the market offers no special rule that a long run of losses must end on schedule. Stockton sees the possibility of a rebound, while the 17-week sequence shows why that possibility has become a topic of interest. Shareholders have already had plenty of time to study the downward line. The next chapter may look different, but the chart has not signed a contract to provide a happy ending. For now, the company whose business includes games of chance has become the subject of a very public discussion about the next turn.
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