The big picture of MGM Mirage (MGM) shows a series of rising lows since March 2009, juxtaposed against a series of rally peaks that form a formidable resistance plateau between 12.80 and 14.25. Currently, the price structure is pushing up towards another confrontation with the 12.80/90 portion of the plateau, which if hurdled and sustained should trigger upside acceleration towards 14.00/25. And if the upper ridge is hurdled, then MGM should gain more upside momentum towards 18.00-20.00. At this juncture, only a decline that breaks last Thursday’s pivot low at 11.82 will compromise the timing of the anticipated upside breakout.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.