Penn National Gaming Inc. (NASDAQ: PENN) shares are trading higher Thursday after the company received approval from the Minister of Canadian Heritage under the Investment Canada Act for its acquisition of theScore.
Penn National is up 7.36% at $76.89 at publciaiton time.
See Also: 3 Reasons To Love Penn National’s theScore Buyout
Penn National Daily Chart Analysis
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Shares look to be trading in what technical traders call a pennant pattern. The stock looks as though it could break out of the pattern in the coming days.
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The price had been getting condensed between narrowing highs and lows and now nears the end of the pattern. If pattern support or resistance gets broken on an above-average volume move, the stock could see a large push in the same direction.
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The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock has been in a period of consolidation.
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The 50-day moving average may hold as support, while the stock could find resistance near the 200-day moving average.
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The Relative Strength Index (RSI) has been trading sideways for the past couple of weeks and sits at 52. This shows a relatively equal amount of buying and selling pressure in the market.
What’s Next For Penn National?
Bullish traders want to see the stock break out of the pattern resistance on above-average volume and start to make a run. Bulls would then like to see the stock cross above the 200-day moving average and consolidate for a time for possible further moves.
Bearish traders are looking to see the stock fall below pattern support and be able to hold the level as resistance. If this were to happen, there is a solid chance the stock sees an even lower push.
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