(See the video above for Jay’s complete chart breakdown.) Ski season is approaching, and Vail Resorts (MTN) shareholders could use some fresh powder. Vail Resorts operates some of North America’s premier ski destinations, including Whistler Blackcomb, Park City Mountain and its namesake Vail Mountain. After several uneven winters, including historically poor Western snowfall last season, management sees a recovery in resort earnings. This winter’s snow outlook offers some encouragement for its Tahoe properties, although Colorado’s forecast remains mixed. As a technician and weather nerd (fun fact — many technicians are), I’m watching “weather” the stock can start climbing before the actual ski lifts do. Looking at the charts, I see a nice ramp forming giving us a jumping point with good risk/reward metrics that can help us navigate the moguls. This week, I examine the long-term chart first. There’s been a consistent down slope since its 2021 peak, but it appears we have found the bottom, and it’s time to ride shares higher. Key technical points: Price broke a five-year downtrend Shares have much to reverse and made a higher low on last sell-off Inverted head and shoulders bottom forming — need price confirmation above $160 A measured upside target of $200 with confirmed breakout Now that we see the longer-term play, here’s what the daily charts showing us. We see the recent rally running into resistance at a familiar spot — the $160 area. However, we can also see the slow climb beginning. Key technical points Shares have recaptured both their 50- and 200-day moving averages Price made a higher low after its most recent decline We have a new defined trend and an inflection point awaits The trade We want to use recent weakness to buy at current levels. If shares break the recent uptrend then set stops just below the 200-day moving average at $139 or at your preferred level of risk tolerance. Overall, shares have broken their long-term downtrend and look poised to pop with little risk of an avalanche to the downside. As we hit the winter months shareholders should be ready to enjoy the snow. Jay Woods, CMT with Chase Games DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
