Signal Says Take Profits on Take-Two

TTWO stock is testing a familiar level of resistance

Apr 3, 2019 at 11:37 AM
facebook X logo linkedin


Take-Two Interactive Software, Inc. (NASDAQ:TTWO) stock rallied hard in March, closing out the month with an 8.2% gain, thanks in part to some Sony (SNE) buyout buzz. However, the video game stock is now trading near a trendline that's had bearish implications in the past, suggesting it could be time to take profits on TTWO.

Diving deeper, the equity is within one standard deviation of its 80-day moving average after a lengthy stretch below it -- defined for this study as trading south of the trendline 60% of the time over the last two months, and in eight of the last 10 sessions. According to Schaeffer's Senior Quantitative Analyst Rocky White, this signal has flashed three other times in the past three years, resulting in an average one-month loss of 4.36% for TTWO stock.

The equity's longer-term trend has been lower. After topping out at a record high of $139.91 on Oct. 1, Take-Two Interactive Software stock plunged to an 18-month low of $84.41 in late February. And while the security has came off that low during its recent rally, up 0.6% today at $98.22, it's now trading near key technical levels -- including that 80-day moving average, the round $100 mark, and a 23.6% Fibonacci retracement of that late-2018/early 2019 decline.

ttwo stock daily price chart april 3

Analysts, meanwhile, remain bullish toward TTWO stock -- which leaves the door open for bear notes, which could pressure the shares lower. While 16 of 18 brokerages maintain a "buy" or better rating on the equity, the average 12-month price target of $122.20 is a 24.4% premium to current trading levels.

Those wanting to maintain exposure to Take-Two Interactive Software could consider buying put options to bet on more downside. The stock's Schaeffer's Volatility Index (SVI) of 37% ranks in the 16th percentile of its annual range, indicating short-term options are relatively cheap at the moment, from a volatility perspective.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI