For those not aware, Las Vegas Sands Corp., LVS, develops, owns, and operates integrated resort properties across Asia and the US. A few of their more well-known are The Venetian Resort Hotel, The Four Seasons Hotel, The Plaza Casino, and The Sands all in Macau, the Marina Bay Sands in Singapore and The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and Five-Diamond luxury resort on the Las Vegas Strip. The company’s integrated resorts comprise accommodations, gaming, entertainment and retail facilities, convention and exhibition facilities, celebrity chef restaurants, and other amenities.
Their stock had a rough time of it after topping in early 2014. Notice that price and momentum diverged just before it peaked forming an overbought divergent high, the warning a correction was due. And quite the correction it turned out to be as it fell more than 55% peak to trough, bottoming almost 2 years later in January of this year. Notice during this time how price stayed below the 200 day moving average once it crossed in June 2014, testing and then failing it once in June 2015.
Like the bearish divergence that formed in 2014 warning of a price reversal, a bullish oversold divergence formed at the bottom of the correction in January of this year, again raising the warning flag of a potential reversal. Since that time, price has moved above the 200 day moving average which has just started to curl north. The bullish reversal was confirmed with the formation and breakout above the inverse head and shoulders pattern. While I am cautious here on equities in general as we move into a seasonally weak period, if the market wants to go higher the upside target for LVS is back up near the prior highs, above $70.