Gannett Co., Inc. (NYSE: GCI)

Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. It operates through three segments: Publishing, Digital, and Broadcasting. The Publishing Segment operates 82 U.S. daily publications with affiliated online sites, including USA TODAY, a national, general-interest daily publication;; USA WEEKEND, a magazine supplement for publishing companies; Clipper magazine, a direct mail advertising magazine; magazines for nurses and allied health professionals; and military and defense publications. The Digital segment operates, an online job site to help companies target, attract, and retain talent. The Broadcasting segment operates 23 television stations and affiliated online sites, which offer news, entertainment, and advertising content; and Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and hotel lobbies in North America.

To review Gannett’s stock, please take a look at the 1-year chart of GCI (Gannett Co., Inc) below with my added notations:

1-year chart of GCI (Gannett Co., Inc)

GCI has been working its way higher since June, but has since paused in a sideways trading range. For the last (2) months the stock has been stuck within a common pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. GCI’s rectangle pattern has formed a $22 resistance (red) and a $20 support (blue). A break above $22 would also be a new 52-week high.

The Tale of the Tape: GCI has formed a rectangle pattern. The possible long positions on the stock would be either on a pullback to $20, or on a breakout above $22. The ideal short opportunity would be on a break below $20.

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Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT