Casino stocks like Las Vegas Sands (LVS), MGM Resorts International (MGM) and Wynn Resorts (WYNN) retook their 50-day lines on Tuesday.
X The gains came days after a top prosecutor in Macau, the world's largest gaming hub, was sentenced to 21 years' imprisonment over a variety of corruption charges, sinking the shares of those companies.
Earlier this month, casino stocks lost steam due to weaker-than-expected gaming revenue from Macau, though the gambling hub is showing continued growth.
Las Vegas Sands climbed 2.2% to 62.48 in the stock market today, at the upper end of buy range from a 59.95 entry cleared on June 1. Stifel Nicolaus raised its price target on Sands to 70 from 66, citing the ongoing improvement in Macau's casino operations.
MGM rose 2.2% to 32.55, moving just out of buy range.
Wynn climbed 2.85% to 133.55. Wynn is well extended from a base breakout, though a rebound off the 50-day line after a test can offer a follow-on entry.
The 50-day moving average is a key test of investor support and a place where mutual funds and other big institutions will often add shares.
Melco Resorts (MLCO) rose 3.2% to 21.82. Hong Kong-domiciled Melco Resorts, which also has big Macau operations, is still below its 50-day line.
China, in an attempt to halt the flight of cash from its borders, has in various ways tried to restrict the gaming industry in Macau, a special administrative region of the nation and the only place in China where gambling is legal.
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