Why is it time to bet on this casino stock?

Casino Unit MGM Resorts International (NYSE:MGM)It is higher today, last trading at $42.98, up 1.21 TP3T. The stock dropped 51 TP3T yesterday to close below $42.50, its first decline since early March. However, now seems to be an opportune time to bet on the next move higher for this security, as the recent correction puts it near its historical bullish trend line.

Specifically, MGM is trading within one standard deviation of its 126-day moving average. According to data provided by Schaeffer's Senior Quantitative Analyst Rocky White, there have been six similar signals in the past three years, with the stock closing higher at 67%, an average monthly gain of 4.4%. Based on the current price, a similar move would put MGM Resorts shares closer to $45 per share. If a similar trend were to occur, MGM Resorts International's share price would be close to $45 per share.

It's also worth noting that MGM is firmly in "oversold" territory, which suggests a short-term rebound may be in the works. 14 Days of MGM Resorts StockRelative Strength Index (RSI)33.5.