More bumps in LVS roadHistorically when this indicator surpasses this level, the stock declines by at least 1%. The average decline is 10.85%. There are many fundamentals in play with this technical indicator that will support a decline.
There are three levels to watch, my play is always the most conservative one.
CONSERVATIVE:
A simple 6% drop to around the low from Dec 8 over the next few weeks.
HISTORICAL AVG:
For historical drops, I try to chose a conservative milestone. Even though the average drop is more than 10%, A safe play is a drop to the 52.10 level.
LAST INTEREST RATE INCREASE:
Last time interest rates increased. LVS dropped more than 22% in only 10 trading days! That was exactly two weeks about a year ago. Unsure what the reaction will be this time around since most pundits agree a interest rate increase is not built in to the recent BULL market boost. The stock could drop another 22%, but my conservative play is to the psychological milestone of 48.00.
