Two Bullish Continuation Patterns

Gambling stocks ($DJUSCA) have been a strong group thus far in 2023, and finding leaders within the space is what we generally want to do.

I've discussed in recent weeks the strength displayed by Las Vegas Sands (LVS). Today, I want to focus on a second stock in the group showing very bullish characteristics - Red Rock Resorts (RRR):

Enter Red Rock Resorts (RRR):

I see two bullish continuation patterns on this chart, the first of which (inverse head & shoulders in black) executed over a week ago when neckline resistance was cleared near the 45.50 level. This pattern measures to roughly 50.50. The second pattern, the cup with handle, executed on Friday's breakout above approximately 48.25. Note that volume during this move higher has been exceptionally strong, adding to the bullishness. I like RRR at the current price and I like adding on any 20-day EMA test. Eventually, I see RRR trading up to the 56 level, which would represent a very solid return from current price.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.