Betting On PENN After Its Pullback
by Mike Paulenoff
September 26, 2020 • 12:12 PM EDT
In his Trading Room on Friday, Mike Paulenoff highlighted a trading opportunity in Penn National Gaming (PENN):
Mike wrote: "During the past week, PENN has been in the grasp of a corrective process (no doubt exacerbated by the announcement of a secondary offering on Thursday morning). The correction has pressed PENN into important support at 62.00 that extends down to 57.60, and includes the up-sloping 20 DMA, now at 62.06. As long as any selling pressure is contained above 57.60, the current pullback should resolve itself in another upmove that projects to 79-82 next."
PENN indeed held support, and went on to rally to over 70, closing at 69.85, up over 12% in just a matter of hours from Mike's initial alert.
Where is PENN headed next?
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