Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels.
Take a look at the 1-year chart of Take-Two (NASDAQ: TTWO) below with added notations:
TTWO has been trending mostly higher for the past year. Over the recent 2-3 months, however, the stock has hit the same resistance at $120 (red) on multiple occasions. The stock is currently sitting just under that level now, and a solid close above the $120 should lead to another leg higher for TTWO.
The Tale of the Tape: TTWO has a 52-week resistance at $120. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
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!
Christian Tharp, CMT