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MGM Mirage (MGM -2.61%, or -$1.15 at $42.93) first showed up featured as "noteworthy" and marked yellow in CANSLIM.net's Mid-Day BreakOuts Report on June 3, 2005 at $39.60 (see here).  On that day it traded 3.8 million shares, more than doubling its average daily volume while rising to new all-time highs.  Volume is one of the best indicators of insitutional support (or a lack thereof) behind a stock's move, and the guideline for buyable breakouts is for volume to rise at least 50%+ above average.  Note, however, that as it rose out of a short cup-like pattern and was reaching new highs again on July 15, 2005, heavier than normal volume, a key ingredient, was not present.  That cup formation was also too short and did not form a proper handle.  When it bounced off of the upward trendline (drawn in green) and posted more big gains on July 28th, the stock was already too far extended from an ideal buy point and it was not emerging from a properly formed base. 

Today this issue violated its upward trendline as it gapped down, but volume didn't run particularly high. Another disconcerting factor was that it also closed today's session below its June peak, thus negating its recent gains that had lifted it to new highs.  Watch now for support to be found above its 50-day moving average line.  Falling back under it, and dropping deeper into its prior base, would be a technical sell signal and cause for greater concern. As always, losses should be limited to 7-8% from wherever you may have chosen to make your purchase.