Katie Stockton Points to Potential Bounce for MGM Resorts After 17-Week Decline

MGM Resorts International has declined for 17 consecutive weeks within a multiyear trading range, presenting a potential countertrend buying opportunity. Following last week’s earnings release, the stock tested long-term support near $26.70 before rebounding, forming a reversal bar on the weekly chart that suggests the recovery may persist. The weekly stochastic oscillator is turning higher from deeply oversold territory, an early signal the stock could 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, with the stock eyeing initial resistance near $34.50—marked by the September price gap and 50-day moving average. Additionally, MGM is showing signs of improving relative performance against the S&P 500, as its relative-strength ratio has rebounded above its 20-day moving average, which is beginning to turn higher after a period of significant underperformance. Fairlead Strategies founder and CMT Katie Stockton indicates the setup may be due for a bounce.

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