Investment in Casino Stocks Series II: MGM Mirage

Last week's post “Investment in Casino Stocks Series I: Las Vegas Sands on Long & Short Investment presented a good strategy for entry point for LVS.  Similarly in Series II of Investment in Casino Stocks, MGM Mirage also presents a good buying opportunity.  Looking at one year chart of MGM, there is a clear descending trend line that has been consolidating for the past several months
and it recently broke out higher.  Key resistance level to break will be at $14.25.  Once MGM closes above $14.25, then this stock will take off higher.  

However, I do expect a pullback toward its support line before reaching $14 range.  When MGM retraces back to $10 range, it would present a good opportunity to go LONG.  Remember just two years ago, MGM was trading around $80 range.  Recently, the volume has increased considerably.  In fact, it has increase on the average about 400% compared to 2007 and 2008.  This is a very good sign for MGM.

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