Melco Crown Entertainment Ltd. (NASDAQ: MPEL) shares rose in value Monday Nov 21 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Credit Suisse Group AG upgraded shares of Melco Crown Entertainment Ltd. (NASDAQ: MPEL) from Neutral to Outperform today. Credit Suisse Group AG currently has a rating of Outperform on the shares. A number of other analysts have spoken on the stock recently, and Melco Crown Entertainment Ltd. has secured a consensus one-year price target of $17.69, a decrease compared to the opening price of $19.35, a difference of 9.21 percent. Melco Crown Entertainment Ltd. stock has a 52-week high of $19.37. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) shares last traded at $19.21, which represents a jump of $0.43 or 2.26% from the previous closing price. Opening at $19.35, they fluctuated from $18.98 and $19.37 throughout the day.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) now has a market cap of 10.36B.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) Average Daily Trading Volume
1,613,406 shares traded hands yesterday, lower than normal, out of a total float 317,988,000. Trading volume is likely to increase in the next few days as momentum traders often use increases in trading volume to pinpoint large volume aggregation or distribution by institutional investors.
However, one day of heavy buy side trading is not enough to affirm a trend. So market traders will continue to look for institutional sponsorship as an indicator 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.
These instituitional investors have 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 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.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Melco Crown Entertainment Ltd. (NASDAQ: MPEL) now has a 50-day MA of $16.85 and 200-day MA of $14.76. It has traded in a 52-week range between $11.91 – 19.370 and today’s last price is 0.85%% lower than the 52 week high of $19.37.
Earnings growth is a critical factor to look at when investing in stocks and investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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