I charted Las Vegas Sands as a short-term short trading idea earlier this morning.
And 12631 member @TheHarper (on Twitter, too) mentioned the major casino as a long-term long investing idea.
I already presented the daily chart earlier which explained the rationale for the short-term short. But now let’s look at the long case on a much larger timeframe.
We have looked at the monthly before on this blog. And the main thing to point out is that LVS went from $150 down to $1 in 2007/2008, an epic crash, but then rebounded to $50 in the following years. Since then, the stock has essentially become dead money, not doing much of anything the past few years.
Psychologically, that is normal and expected–A wild ride up, down, then up again. Eventually, there needs to be a cooling off period on this timeframe. And that is exactly what we have seen and are seeing still.
Now, to The Harper’s point, the issue of when to stalk a long-term entry point comes down to this: Can the stock put in a higher low within this channel, highlighted below? I would not want to see Sands come down and touch the lower support line again below $36; Remember, there is still risk of a breakdown from the channel just as there is an upside breakout.
Specifically, I would use the $47 area as a first spot to consider a long-term position, provided the stock can show some signs of stabilization at that level.
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