Tuesday Morning

Gator's Chart of the Day: LVS

This looks to be a critical week for Las Vegas Sands.  They have the primo properties in Macau and Macau is the gaming capital of the world with five times the revenue of either Las Vegas or Singapore. 

The stock is in a bearish configuration with the 20 day simple moving average having sliced down through the 50 and approaching the 200 from above.  It has pulled back 25% from the April high and is forming a bearish wedge just under the 200 day.  All of that means there is considerable overhead resistance but there is a positive development; it bounced from the lower Bollinger band on the weekly chart (not shown but trust me) and printed a green candle.

The trade

The 200 day is the key.  If it fails to break through in a decent tape then it looks like it's a good place to short it (or buy puts or sell a bear call spread) but if it does clear that green line it could be the beginning of a retracement.  My target would be a 50% retracement which would take the stock to around 54.50.  That would also take it to the bottom of the big red candle from March 5th.

I'm long calls from last week and will either dump them on a failure or add on a break through the green line.