Investment in Casino Stocks Series III: Vail Resorts

This article is series number 3 of 4 covering Investment in Casino Stocks on Long & Short Investment.  Both the Investment in Casino Stocks Series I: Las Vegas Sands and the Investment in Casino Stocks Series II: MGM Mirage presented a good opportunity to go LONG based on fundamental and technical analysis.  However, today I will discuss another casino stock, Vail Resorts, and why Vail Resorts does not fall into same category as the previous two casino stocks.

Unlike Las Vegas Sands and MGM Mirage, Vail resorts casino stock is looking weak due to some bearish signs according to the technical analysis.  I would agree that although MTN has been making newer highs with higher lows, recently MTN has come out of this bullish sign pattern.  In January, MTN has broken out of the support trend line and has made a lower low and has nicely retraced back to its resistance line.  However, it does not mean we should trade SHORT on MTN at this time.  Key levels to watch are $35 and $38-$39 ranges.  If MTN goes below $35, then it is starting a new trend where newer lows are followed by lower lows.  Once this occurs, then it could signal bearish and we should be shorting MTN.  If MTN, however, goes past $38-$39 range, then it would have broken the major resistance level and could head higher beyond $40.  Let’s watch this stock carefully in upcoming weeks and should gives us a clue as to which direction MTN is headed in the upcoming months.

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