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Swing Trade Idea (MGM) – November 14, 2023

Our bearish trade for Tuesday, November 14th is MGM Resorts International (MGM). MGM is part of the Consumer Discretionary Sector, which has performed at -1.04% over the last week, with MGM overperforming at -0.89% over the same period.

MGM had a sharp move higher but traded into a key area of resistance at $40, from where it is pulling back. It recently broke below the 21 Day EMA while its strength is continuing to decline. We, therefore, believe that MGM will not trade higher over the duration of this position.

As a close, if MGM were to trade above $40 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $2.24.