Melco Crown Entertainment Ltd. (NASDAQ: MPEL) shares rose on Wednesday Nov 30 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.
The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.
The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.
Citigroup Inc. analysts reiterated its Buy rating on Melco Crown Entertainment Ltd. (NASDAQ: MPEL) in a note to investors, making it one of the more closely watched stocks on Wall Street. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and the company has secured a consensus one-year price target of $18.18, less than the opening price of $19.29. Melco Crown Entertainment Ltd. stock has a 52-week high of $20.00. Stock prices often trend to the upside on recommendations and new price targets of professional analysts.
Shares of Melco Crown Entertainment Ltd. (NASDAQ: MPEL) opened at $19.29 on Tuesday trading between $19.23 and $19.59, and last traded at $19.38, an increase of $0.26 or 1.36% compared to the previous closing price.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) currently has a market cap of 10,535.78B.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) Average Daily Trading Volume
The stock’s average daily volume is 3,309,340 shares out of a total float 317,988,000 and some 829,699 shares crossed the trading desk yesterday, lower than the average. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to determine substantial volume accumulation or circulation by institutional investors.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Melco Crown Entertainment Ltd. (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.
Traders can make more useful judgments on trades when they track the trading habits of professional investors.
Trades for Melco Crown Entertainment Ltd. (NASDAQ: MPEL) have ranged from $11.90 – 20.00, and the stock now has a 50-day MA of $17.33 and 200-day MA of $14.95. Today’s last price is 3.10%% under 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 increased their earnings at least 25% or more over a 3 year period.
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