MGM hits downward sloped trend line and gets a bearish signal at the same time
Casino operator MGM Resorts (NYSE: MGM) has been on a different path from the overall market over the last four and a half months. Like most stocks, MGM rallied from its December low, but it bounced even more sharply than most. From its Christmas Eve low to the February 1 high, the stock gained over 36% while the S&P gained just over 15%. Unfortunately for MGM shareholders, the stock wasn’t able to maintain that momentum and has been trending lower since the February high.
Looking at the daily chart we see that by connecting the February high with the April high we get a downward sloped trend line. After rallying for the last few weeks, the stock is now hitting that trend line and it is overbought based on the stochastic readings and the 10-day RSI.
The Tickeron Trend Prediction Engine generated a bearish signal for MGM on June 14. It shows a confidence level of 70% and it calls for a decline of at least 4% over the next month. Past predictions on MGM have been successful 87% of the time.
The fundamentals for MGM are a bit of a concern as well. The company has only seen earnings grow by 6% over the past three years and they were down 55% in the most recent quarter. The management efficiency measurements are below average as well with a return on equity of 7.5% and a profit margin of 6.8%.
Between the trend line on the chart, the bearish signal from the Trend Prediction Engine, and the subpar fundamentals, things aren’t looking all that great for MGM right now.
MGM's RSI Oscillator descending into oversold zone
The RSI Oscillator for MGM moved into overbought territory on September 12, 2025. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MGM advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 271 cases where MGM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on MGM as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MGM turned negative on September 05, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
MGM moved below its 50-day moving average on September 05, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MGM crossed bearishly below the 50-day moving average on September 12, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MGM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MGM broke above its upper Bollinger Band on August 27, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MGM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.263) is normal, around the industry mean (5.526). P/E Ratio (19.475) is within average values for comparable stocks, (497.310). Projected Growth (PEG Ratio) (1.604) is also within normal values, averaging (1.688). MGM has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.031). P/S Ratio (0.604) is also within normal values, averaging (1.768).
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General Information
a holding company that is primary engaged in the ownership and operation of casino resorts
Industry HotelsResortsCruiselines
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