(See video above for Katie’s complete chart breakdown.) MGM Resorts International (MGM) has declined for 17 consecutive weeks within a multiyear trading range, creating a potential countertrend buying opportunity. Following last week’s earnings report, MGM successfully tested long-term support near $26.70 before rebounding to end the week. The move formed a reversal bar on the weekly chart, suggesting the recovery could continue. The weekly stochastic oscillator is turning higher from deeply oversold territory, an early sign that the stock may be forming an intermediate-term bottom. A move above 20% would provide further confirmation. Short-term momentum has improved significantly, according to the daily MACD. The stock has room to rally toward initial resistance near $34.50, marked by the September price gap and 50-day moving average. MGM is also showing signs of improving performance relative to the S & P 500. The stock’s relative-strength ratio has rebounded above its 20-day moving average, which is beginning to turn higher after a period of significant underperformance. Katie Stockton , CMT, is the Founder and Managing Partner of Fairlead Strategies. Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
