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MGM’s stock price is expected to open lower today, following a drop in its Hong Kong-listed counterpart as casino stocks face ongoing challenges. Casino stocks in Hong Kong have been hit hard this week due to new regulations from Beijing, which have caused chaos in the Macau casino and gaming industry.
MGM’s stock is also feeling the impact because the company has some interests in Macau.
The casino industry in Macau has been struggling since the pandemic. Travel restrictions and limits on gatherings have kept tourists and gamblers away. Chinese officials have announced plans to place government supervisors in Macau’s gaming companies, adding to the sector’s woes and causing a combined market loss of about $14 billion.
Currently, MGM’s stock is trading at $40.28 in premarket trading, down 10 cents from Wednesday’s closing price.
After completing a triple top pattern, the stock is facing a challenge at the $39.64 support level. If this support breaks, the next key level to watch is $37.28. A further decline could push the stock towards $35.93 or $34.08.
On the other hand, if the $39.64 support holds, the stock might bounce back and test the previous resistance level of $42.05, which was part of the triple top pattern. A successful break above this level could lead to testing the previous highs at $43.66. The uptrend will continue if the stock surpasses these levels and the June 24 high of $45.36.