INVESTING
Bullish on GameStop GameStop Corp. ("Thursday's close $43.56 U.S.) had a breakout from a large multiyear trading range in 2013 ("dashed lines). It then had an extremely sharp rise to $57.74 ("A) followed by an extensive correction. The stock declined below its 40-week moving average ("40wMA - B) and settled in a descending wedge pattern ("dotted lines). The recent rise above the top of this formation suggests renewed investor interest and the resumption of the long-term up-trend ("C). Only a sustained decline below $39-$40 would be negative. Point & Figure measurements provide targets of $49 and $54. The large base ("dashed lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc ("phases-cycles.com). Ron Meisels is a contributor to the NA-marketletter.com site and tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary. Chart source: decisionplus.com