Is MGM Setup for a Price Breakout?

MGM MIRAGE (NYSE:MGM) has cooled just a bit since we reported about its volume breakout on Sept. 9 that crushed the then $9 resistance.  The stock has cruised up from its $10.09 close at on the Sept. 9 article to its current close of $13.22, leaving it sitting just below its resistance level of $14 set back in early May.  Given the recent heavy volume the past 10 trading days, it may be poised for a price breakout move.  This is one stock to definitely keep your eye on, especially if the economy continues to improve as that will likely translate into additional sales and profit for MGM.

According to the StockChart’s chart for MGM, the stock’s price is solidly above it moving averages, and the 10-day simple moving average is sharply above the 20- exponential moving average.  The moving average convergence/divergence  histogram is currently in a bullish uptrend and exhibiting strength.  The Chaikin Money Flow provides some signs of early accumulation.  True, this stock may fall flat, but it is worth keeping your eye on it to see if it can break out and make a strong positive movement above $14.

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