Las Vegas Sands Soars as Investors See What's in the Cards for Macau

view original post

Macau, the world’s largest gambling center, announced Friday that it was keeping its casino licenses limited to six companies and cut their duration. Some investors were concerned that the new laws would change the status quo in the territory controlled by China.

Let’s check out the charts of Las Vegas Sands (LVS)  , which gapped higher Friday, on the news.

In the daily bar chart of LVS, below, we can see the price strength as the shares jumped to the upside and test/break the November highs. Prices are above the 50-day moving average line but still below the 200-day line.

The On-Balance-Volume (OBV) line shows some improvement from the middle of December. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line with a new outright buy message.

In the weekly Japanese candlestick chart of LVS, below, we have yet to turn prices to the upside. Prices are trading below the declining 40-week moving average line. When this week’s candle is plotted we should see a rally to the underside of the 40-week line.

The weekly OBV line is still in a two-year decline. The MACD oscillator is slowly improving but remains well below the zero line.

In this daily Point and Figure chart of LVS, below, we can see a potential price target of $57.

In this weekly Point and Figure chart of LVS, below, we can see a potential target in the $61 area.

Bottom-line strategy: Friday’s rally on increased volume is a step in the right direction. I cannot rule out a pullback in LVS in the days ahead. LVS needs a couple strong closes above $45 to convince me of the upside.