The Caesars stock price reversed two weekly losses, ending last week in the green. CZR needs to repeat the feat this week to keep its uptrend intact.
Caesars Entertainment Inc (CZR: NASDAQ) closed at $102.45, down $2.30 (-2.20%)
Caesars, the legendary Las Vegas gambling giant, has enjoyed a hot streak of luck over the last 15 months. CZR gained over 1,800% from its March 2020 low of $6.02 to its $113.45 June 2021 peak.
Several supporting factors have driven the Caesars stock price higher over the last year. Firstly, at $6.00, the stock was pricing the worst possible outcome from the Covid-19 pandemic. Furthermore, Caesars has been proactive and used the downtime to expand its online presence and sign some quality deals.
The $4 billion acquisition of UK Bookmaker William Hill makes a worthwhile addition to the stable of companies now under the control of the Nevada-based gaming firm.
Additionally, recently penned sponsorship deals with the National Football League (NFL) and CNBC will increase brand recognition.
Lastly, as of June 1st, Las Vegas is fully open for business.
The weekly price chart shows three clear trend lines. The highest has acted as price resistance for more than two years. The second trend resistance has been in place from before the March 2020 low. What’s interesting is that both lines converged at the $113.50 peak earlier this month.
After tagging the trend line resistance, CZR snapped sharply lower, before finding support at trend number three.
This trend from October 2020 has been a good support area during this year’s impressive bull run. We can see that on 10 separate occasions, the price has bounced after testing the supportive line. The latest of which came last week, when the Caesars stock price dipped below $100.00.
So, this week could be an important one. If CZR manages to stay above the support at $100.00, it should return to the upper end of the channel and test the resistance lines, which are now seen at $114.45 (trend #1) and $116.45 (#2).
However, if CZR closes the week at double, rather than 3-digits, it would suggest the price is breaking down. This would initially target the $90.00 area which saw the last decisive test of the uptrend on May 7th.
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