Las Vegas Sands Stock is the most oversold ever: Is LVS worth a Gamble?

Las Vegas Sands stock price has been destroyed in 2021, losing more than 40% since March. But LVS’ Macau presence may force the casino company even lower. The saying the house always wins is synonymous with casino’s, but in 2021, the house has suffered serious losses. This has resulted in LVS being the only SP500 stock to register a loss of more than 30% year to date. Furthermore, the stock is more oversold now than during the Great Financial Crises (GFE) and last year’s pandemic low. So how much worse can it get?

Las Vegas Sands (NYSE: LVS) has performed horribly following the surge in delta-variant covid-19 cases in China. The resulting lockdowns have proved costly for firms with exposure to the Asian gaming mecca Macau. And Sands, which has several casinos and resorts in the region, has been lower in 11 of the last 12 weeks and currently just 12% higher than the 2020 decade low. Furthermore, the precipitous decline from March’s $66.77 high has resulted in the Relative Strength Index dropping to 21.07, the lowest reading since LVS’s stock market listing in 2004.

LVS technical outlook

The weekly chart highlights the magnitude of the decline. The collapse over the last 5 months has been almost verticle and reminiscent of early 2020. LVS is way below the major moving averages, and the Moving Average Convergence Divergence (MACD) Indicator is deeply negative.

The only visible positive development is that the price will soon approach a long term horizontal support level between $33.30 (March 2020 low) and $34.72 (July 2012 low). Over the last 10 years, the Las Vegas Sands stock price has reversed from this area and gone on to material gains. Therefore, it’s likely some bargain hunters will emerge if LVS declines further. However, a close below $33.30 could prove disastrous. In that event, a lack of technical support could send the price hurtling lower. Although to what price is a crapshoot. But at some stage, unless the legendary company is going out of business, the price will be cheap.

Investors who like a gamble may wish to take advantage of the oversold conditions and the approaching major support for a cheeky punt on the price. A highly speculative trader could buy LVS towards $35.00 and place a stop below $33.30 on a closing basis. Considering the three previous bounces took the price above $75.00, punters may like those odds.

Las Vegas Sands Stock Price Chart (Weekly)

Las Vegas Sands stock price

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