GameStop Is Near a Key Resistance Area

Published on Thursday, 31 January 2013 07:56 Written by TradersHuddle Wire

New York, January 31st (TradersHuddle.com) - Shares of GameStop Corporation (NYSE:GME) are trading very close to calculated resistance at $24.22. The stock ended the trading session at just $23.64, which is near levels that make it difficult to buy or start a position.

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

GameStop's stock range is defined by its calculated support defined at $22.30 and by the resistance level at $24.22; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for GameStop. However, as the stock pulls back towards $22.30 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $24.22 then traders will get an opportunity to enter the stock as it moves to a higher range.