Melco Crown Entertainment Limited (NASDAQ: MPEL) shares rose in value on Monday February 13 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. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Analysts at Morgan Stanley upgraded shares of Melco Crown Entertainment Limited (NASDAQ: MPEL) from Equal Weight to Overweight today. With a rating of Overweight on the shares, Melco Crown Entertainment Limited has a 52-week high of $20.00. The one-year price target of $20.04 is higher than the opening price of $17.21, resulting a number of other analysts to issue statements on the company recently. Typically, after analysts publish an upgrade report on a stock, they will subsequently issue recurring updates, such as a price target change.
Yesterday Melco Crown Entertainment Limited (NASDAQ: MPEL) shares last traded at $17.44, which is a spike of $0.56 over the previous closing price. Opening at $17.21, they fluctuated from $17.03 and $17.47 throughout the day.
Melco Crown Entertainment Limited (NASDAQ: MPEL) now has a market cap of 8.51B.
Melco Crown Entertainment Limited (NASDAQ: MPEL) Average Daily Trading Volume
747,322 shares traded hands yesterday, 97 percent below the norm, out of a total float 301,580,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Melco Crown Entertainment Limited (NASDAQ: MPEL) now has a 50-day MA of $16.65 and 200-day MA of $16.21. It has traded in a 52-week range between $11.90 – 20.00 and today’s last price is 12.80%% lower than the 52 week high of $20.00.
Indeed, earnings growth is among the most crucial 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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