Is GameStop (GME) on the Verge of a Breakout?

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GameStop Corp (NYSE:GME)

by Ritull Raj – [email protected]

Gamestop GME

Company Description

“GameStop Corp. (GameStop) is a multichannel video game, consumer electronics and wireless services retailer. The Company operates its business in four Video Game Brands segments: United States, Canada, Australia and Europe, and a Technology Brands segment. The Video Game Brands segments include 6,457 stores, 4,249 of which are included in the United States segment. Each of the Video Game Brands segments consists of retail operations, with all stores engaged in the sale of new and pre-owned video game systems, software and accessories. The Company’s Video Game Brands stores sell various types of digital products, including downloadable content, network point’s cards, prepaid digital, online time cards and digitally downloadable software. The Technology Brands segment includes all of its Simply Mac, Spring Mobile and Aio Wireless stores.”Reuters

 

Technical Analysis:-

GameStop is breaking out of an ascending triangle pattern on today’s move.  The stock has room above the high on 3/26/15 of $39.80 to the high on 3/25/15 of $41.21.  These represents my short term targets with a longer term target of seeing a return to $44-45 per share.  Company belongs to consumer sector and currently the sector has been performing well this year.  Continued growth in this sector should result in a strength for GameStop.  The stock was as low as $32.00 in the last 6 months and is currently trading 20% off those lows.

 

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