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Penn National Gaming's Stock Needs To Hold A Key Support Level

Penn National Gaming, Inc. (NASDAQ:PENN) shares are trading lower Monday, possibly after the company announced a meeting for the acquisition of Score Media and Gaming Inc (NASDAQ:SCR), which will become the wholly-owned subsidiary of Penn National.

The special meeting of company shareholders will be held on Thursday, Oct. 12, 2021.

Penn National is trading down 2.49% at $77.82 at last check Monday at market close.

Penn National Daily Chart Analysis

  • Shares look to have possibly broken out of a sideways channel and now look to be testing old resistance as support.
  • The $75 level is an area where the stock struggled to cross above for a time holding as a resistance, but has since crossed this level and may now possibly hold this level as support. If this level is unable to hold as support the stock may fall toward the possible $60 level.
  • The stock is trading above the 50-day moving average (green) and below 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
  • The 50-day moving average may hold as an area of support, while the 200-day moving average may act as a place of resistance.
  • The Relative Strength Index (RSI) was moving higher, but was unable to cross above 70. The RSI has since fallen down to 51, where buying and selling pressure is relatively equal.

What’s Next For Penn National?

Bullish traders are looking to see the stock be able to hold above the $75 level. If the stock can consolidate for a time above $75, it may be ready to continue on its run and see a further bullish push.

Bearish traders are looking to see the stock be unable to hold above the $75 level. If the stock fell below $75 it could fall all the way back to the $60 level, where it once found support.

Photo: Aidan Howe via Unsplash

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