Shares of Las Vegas Sands Corp. (NYSE:LVS) closed the trading session at $48.80 below calculated support at $50.64. The stock broke down technically, raising concerns as the move might trigger additional selling.
Las Vegas Sands Corp. (LVS) owns and operates casino resorts and convention centers. The Company operates in United States, Macau, and Singapore and offers a wide range of gaming activities and entertainment as well as overnight accommodations in properties like the Venetian and the Palazzo in Las Vegas, NV. Its expo centers host a wide range of entertainment shows, expositions, and other activities.
Las Vegas Sands' stock was trading in a well-defined range with support at $50.64 and resistance at $62.09; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.
From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $50.64 will remain in focus as Las Vegas Sands' price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.
Traders wanting to establish a short position in Las Vegas Sands can do so, if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $50.64. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.