Playing GameStop

Published on Wednesday, 08 February 2012 08:32 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of GameStop Corporation (NYSE:GME) closed the trading session at $23.73 near its 50 day and 200 day moving averages currently set at $23.82 and $24.44 respectively. GameStop's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

GameStop Corporation (NYSE:GME) operates specialty electronic game and PC entertainment software stores throughout the United States, Australia, Canada and Europe. The Company stores sell new and used video game hardware, video game software and accessories

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $23.17 and calculated resistance at $25.00. These levels should be watched by traders, as they provide insight into the latest price dynamics in GameStop shares.

Traders should evaluate their options if they want to establish a position on GameStop given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.