Melco Crown Entertainment Limited (NASDAQ: MPEL) shares rose in value on Wednesday January 25 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
Analysts at Nomura upgraded shares of Melco Crown Entertainment Limited (NASDAQ: MPEL) from Reduce to Neutral today. With a rating of Neutral on the stock, the company has a 52-week high of $20.00. As a means of comparison, a number of other analysts have spoken on the stock recently, and Melco Crown Entertainment Limited has earned a consensus one-year price target of $19.98, above the opening price of $17.50. Typically, after analysts publish an upgrade report on a stock, they will subsequently issue periodic updates, such as a price target change.
Yesterday Melco Crown Entertainment Limited (NASDAQ: MPEL) shares last traded at $17.57, a jump of $0.33 from the previous closing price. Opening at $17.50, they ranged from $17.45 and $17.76 throughout the day.
Melco Crown Entertainment Limited (NASDAQ: MPEL) currently has a market cap of 8.57B.
Melco Crown Entertainment Limited (NASDAQ: MPEL) Average Daily Trading Volume
The stock’s average daily volume is 4,502,230 shares out of a total float 301,633,000 and some 737,724 shares crossed the trading desk yesterday, 93 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
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 substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in 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 traders to make those trends work in their favor and increase the number of winning trades.
Trades for Melco Crown Entertainment Limited (NASDAQ: MPEL) have ranged from $11.91 – 20.00, and the stock now has a 50-day MA of $16.62 and 200-day MA of $15.85. Today’s last price is 12.15%% under the 52 week high of $20.00.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more for 3 consecutive years.
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