MGM Resorts International (MGM)

This company is reacting to breaking news.

Watch the relative momentum chart closely. Red indicates underperformance relative to the S&P 500 Index. Recent price action also broke below the uptrend line.

Its 200DMA has been a flat line these past couple of months. Will bulls find support if it gets tested?

For more information on how we evaluate stocks, check out Seven Steps to Better Stock Trading, Part 1 and the video in Part 2.