Old Media is Dead, Long Live Old Media: Gannett

• Posted by Greg Harmon
• on February 11th, 2015

Newspapers are dead, right? More and more close every year. And noone under 30 watches television except for live sports. As for looking for jobs on line, I am not sure that ever worked other than for clerks at stores and fast food places. So why is the stock of a media company that combines all of these looking so good? Gannett ($GCI), publishes USA Today, operates 43 television stations and the CareerBuilder website. And its stock is prepping for a a breakout higher. It just needs a catalyst. Oh, did I mention that has garnered the attention of activist Carl Icahn recently.

The chart above shows two major patterns lining up that point to a move higher. The first is the bearish Deep Crab harmonic illustrated by the two shaded triangles. it is called a bearish pattern because it has a Potential Reversal Zone (PRZ) to move back lower upon reaching 40.40. But at a current price under 35 the move to get to 40.40 is quite substantial. The second is the Ascending Triangle highlighted by the yellow bar resistance and rising red tend support. A break over the resistance zone carries a target of 42.

Two different forms of technical analysis pointing higher. And a quick check of the momentum indicators shows that the RSI is bullish and rising while the MACD is also bullish. Confirmation. This mosaic of positive technicals should have you watching the news for a break over 34.70 to get long this stock.

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