MGM Resorts stock pulled back to a historically bullish trendline
Casino stock MGM Resorts International (NYSE:MGM) is slightly lower today, last seen down 0.6% at $42.27. Since touching a roughly 15-year high of $51.35 on July 31, the shares have worked their way lower on the charts. In fact, MGM is down 16.8% in August, though a bull signal is flashing on the charts that could help it reclaim some of these losses.
Specifically, MGM is trading within one standard deviation of its 200-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, four similar signals occurred over the past three years, and the stock finished higher 75% of the time, with an average 10% one-month gain. From its current perch at $40.66, a similar move would put MGM Resorts stock at more than $46.60.
Those looking to bet on the stock's pop should consider options. MGM Resorts stock is seeing attractively priced premiums at the moment, per its Schaeffer's Volatility Index (SVI) of 31%, which sits in the 15th percentile of its annual range -- an indicator of low volatility expectations.