Bull & Bear: Melco Crown Entertainment

Shares of Melco Crown Entertainment Limited MPEL are trading lower on the session by 1.53%, at $10.94. With shares holding their ground during the recent market sell off, you have to wonder where it's heading next… Bulls: Bulls will note that Melco Crown Entertainment Limited has been forming a wide consolidation pattern above the 50-day moving average. This is typically indicative of a strong stock that is looking to break higher. With the 20-day and 50-day moving averages currently upsloping, momentum is on MPEL's side. Bulls will also note that the 200-day moving average is also upward-trending. In addition, the stock has worked off an overbought condition, which leaves room for further bulls to pile in. A bullish trader could buy the August $11/13 call spread for a net debit of $0.75. Bears: Bears will note that Melco Crown Entertainment Limited is the last on the casinos standing, so to speak. Both LVS and WYNN have broken down through support and are now in bearish trends. It seems like only a matter of time before bull volume is exhausted and the stock breaks lower. Bears will also note that MPEL saw a huge influx of put activity back on the 9th of June; shares have been stagnant ever since. A bearish trader could buy the August $11/9 put spread for a net debit of $0.75. Melco Crown Entertainment Limited is a developer, owner and, through its subsidiary Melco Crown Gaming, operator of casino gaming and entertainment resort facilities focused on the Macau market. Melco Crown Gaming is one of the six companies licensed, through concessions or sub-concessions, to operate casinos in Macau. The company owns and operates City of Dreams, Altira Macau, Mocha Clubs and Taipa Square Casino. Its other projects include City of Dreams Phase II, Macau Studio City Project and Macau Peninsula Site.