Why Just Take 1, When You Can Take Two

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Take Two Interactive ($TTWO) has been moving higher since the beginning of 2013. There have been periods of consolidation along the way. And those periods have been the place where the stock has given you a good spot to enter. One of those happened last week. On May 18th the company reported earnings after the close. The next day the stock opened down over 10%. But it climbed all day ending up over 4% on the day. The chart below shows the the long green candle.

Notice that this candle touched below the 200 day SMA. If you follow the 200 day SMA back you see a couple of touches and very little time spent under the 200 day SMA. Each touch has been a buying opportunity. So if this was the sign to enter why am I talking about it today? Because there are many ways to trade. A second method is to trade a break above resistance.

ttwo

This is happening right now in Take Two. The upper end of the main part of the chart shows price breaking resistance. This gives a natural stop loss to trade against. The break out level. So if you missed the 200 day SMA this time, consider the break out trade. Momentum remains strong and bullish with the RSI and MACD both rising. If the break out fails stop the trade for a small loss and put in a bid to buy at the 200 day SMA.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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