Melco Crown Entertainment Limited (NASDAQ: MPEL) shares rose in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Bank of America Corporation upgraded shares of Melco Crown Entertainment Limited (NASDAQ: MPEL) from Neutral to Buy today. Bank of America Corporation currently has a rating of Buy on the stock. The one-year price target of $19.72 is above the opening price of $16.28, causing a fair amount of other analysts to report on the company in recent days. Looking back over the last 52 weeks, Melco Crown Entertainment Limited stock has a high of $20.00. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Yesterday Melco Crown Entertainment Limited (NASDAQ: MPEL) shares last traded at $16.45, which is a spike of $0.60 over the previous closing price. Opening at $16.28, they varied from $16.18 and $16.50 throughout the day.
Melco Crown Entertainment Limited (NASDAQ: MPEL) currently has a market cap of 8,092.99B.
Melco Crown Entertainment Limited (NASDAQ: MPEL) Average Daily Trading Volume
2,979,122 shares crossed the trading desk yesterday, 62 percent lower than normal, out of a total float 317,988,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that research thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
Melco Crown Entertainment Limited (NASDAQ: MPEL) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Melco Crown Entertainment Limited (NASDAQ: MPEL) now has a 50-day MA of $17.32 and 200-day MA of $15.47. It has traded in a 52-week range between $11.90 – 20.00 and today’s last price is 17.75%% lower than the 52 week high of $20.00.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings by at least 25% over 3 consecutive years.
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