Trading Idea: Is GameStop Breaking Out?
Published on Wednesday, 01 May 2013 09:44 Written by TradersHuddle Wire
New York, May 1st (TradersHuddle.com) - Shares of GameStop Corporation (NYSE:GME) closed the session at $34.90 just above calculated resistance at $33.26. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
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
The stock was trading in a well defined range with support at $23.36 and resistance at $33.26. Given that this range was broken, traders will be closely monitoring GameStop's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that GameStop is still near the broken resistance level, traders will be focusing on the $33.26 level to see if the stock holds the breakout without rolling over.