Boston, MA, 04/23/2014 (usastockreport) – Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) firmed up on Tuesday after marginally loosing on Monday, the stock made substantial intraday gains but could not hold to the gains, the stock consolidated at $38.03 with a gain of 4.65%.
The stock has rather been trading in a very volatile manner and in a very close range, the stock has broken its trend and is on an upside, this implies the stock might continue with its upward trend.
The stochastic oscillator for Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) suggest a strong upside; we believe the stock might see the stock make some more gains before it settles. The relative strength index for the stock took a sharp upward turn indicating a strong buying in the stock, this implies the traders have gotten into long positions with the stock. This is a bullish trend for the stock.
The technical indicators on the weekly charts also depict a similar picture, the stochastic oscillator shows a sharp upward curve, and this implies an upward trend for the stock. The relative strength index has also broken above the no trade zone, this shows a strong upward trend for the stock.
Looking at the daily charts, the stock has its first support levels around $33.70 and on a bullish note the first resistance level for the stock is around $39.80, a positive break out above this level could see the stock test $45.36 levels. The stock is forming a bullish flag in the daily chart which is a bullish pattern. The breakout from this pattern would happen once the stock crosses $40.
(FIGURE): Daily Chart For Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL)
Strong growth figures coming out of MACAU is positive news for the gaming companies, With Melco Crown Entertainment Ltd exposure in Macau, and the company can expect a growth in revenues. Analysts continue to stay bullish on Macau.