Good technical signals and a possible breakout for CAESARS ENTERTAINMENT INC.

CAESARS ENTERTAINMENT INC (NASDAQ:CZR) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:CZR.

What is the technical picture of NASDAQ:CZR telling us.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 8 out of 10 to CZR. Although CZR is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• CZR is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so CZR is lagging the market slightly.
• In the last month CZR has a been trading in the 41.40 - 45.93 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the performance of all stocks over the past year, CZR turns out to be only a medium performer in the overall market: it outperformed 64% of all stocks.
• CZR is an average performer in the Hotels, Restaurants & Leisure industry, it outperforms 59% of 134 stocks in the same industry.

For an up to date full technical analysis you can check the technical report of CZR

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:CZR is 9:

Besides having an excellent technical rating, CZR also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 45.29. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 44.47, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NASDAQ:CZR?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.