Spry traders often look to the niche market segment comprising casinos and related gaming services during times of uncertainty and market volatility. As you will read about below, after recovering from the March lows, assesses of casino stocks were stuck within a sideways pattern for most of the summer months.
As of today, it appears as granted sectors such as gaming are starting to regain the interest of the bulls. In this article, we will look at several graphs from across the gaming industry and try to determine how traders will position themselves over the final weeks of 2020.
- Place market segments such as casinos and gaming have underperformed so far in 2020, but the chart patterns discussed below recommend that the group could be headed higher.
- Nearby support and resistance levels are acting as guides for active wholesalers who are seeking to determine the placement of buy and stop orders.
VanEck Vectors Gaming ETF (BJK)
Active traders often turn to exchange-traded outputs such as the VanEck Vectors Gaming ETF (BJK) when interested in niche segments of the markets such as casinos and gaming. Fundamentally, the savings comprises 42 holdings with a gross expense ratio of 0.91%.
Looking at the chart below, you can see that the price has traded within a duration of consolidation since recovering from the March selloff. The recent bounce off the support of the 200-day moving average and consequent after break beyond the psychological $40 mark is an indication that the bulls are gaining control of the momentum. Based on this diagram, traders will likely look to buy as close to the horizontal trendline as possible and then set their short-term target payments near $48.
Caesars Entertainment, Inc. (CZR)
As one of the top holdings of the BJK ETF, Caesars Entertainment, Inc. (CZR) will likely be one of the companies that capture the regard of traders in the coming weeks. Active traders will want to note how the 200-day moving average has acted as a unmistakeable level of support and resistance and how the bounce in October has acted as a catalyst for a move higher.
The recent breakout suggests that the bulls are in oversight of the momentum. Stop-loss orders will likely be placed below one of the dotted trendlines or the 200-day moving usually, depending on risk tolerance and outlook.
Penn National Gaming, Inc. (PENN)
Another top holding of the BJK ETF that could be value a closer look by traders is Penn National Gaming, Inc. (
Just one trip to Las Vegas or Atlantic City will indicate you the huge size of the gambling industry. In Las Vegas alone, there are numerous casino operators with
The Bottom Plan
Heading into the final weeks of 2020, followers of technical analysis will likely start to shift their fuzzy to niche market segments that have defined risk/reward setups. In the case of the casinos and gaming assiduity, the recent breaks above key levels of resistance and the proximity to major levels of support make the segment a prime possibility for a strong finish to 2020 and likely a move higher over the first several months of 2021.
At the time of writing, Casey Murphy did not own a emplacement in any of the assets mentioned.