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what the charts say

GameStop Corp. 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. Ron Meisels is a contributor to the www.NA-marketletter.com website and tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.