GameStop Corp (NYSE:GME) is a retailer of video game products and PC games. As the stock has recently made a good move off a near-term bottom despite lousy August video game sale numbers it caught my attention.
The weekly chart displays a narrowing trading range dating back to 2009. On the week of August 15th the stock spiked down to near the $17-$18 range that serves as multiyear support. By the end of the week however the stock left a long tail and a bullish candle that has so far led to higher prices. The multi-year downtrend line currently comes in around $27.50 which if/when broken to the upside on a weekly basis could offer us a good long-term entry point.
In the meantime however the daily chart also offers some interesting views. The violent bounce off the multiyear support area near $17-$18 is clearly visible. The stock currently sits close and cozy to its 50 and 200 (lower line) day simple moving averages, which are acting as some resistance. At the same time the $24 horizontal resistance level is also close by. On a solid daily close above both moving averages and the $24 level a good long entry point in GameStop Corp (NYSE:GME) might arrive. With initial stops near $21.50 (followed by trailing stops) and profit targets at $26 followed by $28 this seems like an interesting setup.
