Despite the fact that Macau casino operator Melco Crown Entertainment Ltd MPEL 4.66% reported a Q2 earnings and revenue miss this week, the company’s stock has been on fire, gaining about 7.0 percent over the last five trading sessions.

Unfortunately for shareholders, the stock is now trading near some major technical resistance levels. The stock’s behavior over the next several trading days could prove to be extremely important from a technical perspective.

The Good News

There is both good news and bad news for Melco shareholders in the stock’s chart following its post-earnings jump.

First, in the short term, there are several positive technical indications for Melco. First, the peak of Thursday’s trading established the stock’s fourth consecutive higher peak over the last three months. Second, after the stock broke above its 50-day moving average in early July, the line has since served as support for the stock. In late July, Melco re-tested its 50-day average and then bounced to new multi-month highs.

The Bad News

Unfortunately, the bad technical news for Melco is…

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