This Video Game Maker Looks Like a Winner

TTWO is trading in a bull channel with support from a new MACD buy signal

   
This Video Game Maker Looks Like a Winner

Take-Two Interactive Software (NASDAQ:TTWO) — This video game maker sells interactive software games and accessories for PCs and gaming systems offered by Sony (NYSE:SNE), Nintendo, and Microsoft (NASDAQ:MSFT). Its “Grand Theft Auto V” is set to be released this year, and it is expected to account for 50% of revenues. Earnings for fiscal year (FY) 2013, ending in March, are projected to be $0.18, up from a loss of $0.71 in FY 2012. FY 2014 EPS is expected to be $2.26.

In December, the stock’s 50-day moving average crossed above the 200-day. This is a bullish signal called a golden cross and is considered to be a positive and powerful long-term development.

The stock broke from the top of a bull channel in February, following better-than-expected earnings, and began forming a second bull channel. Support for the current channel is the resistance line of the first, a strong indicator that the bull trend will continue. This view was supported Wednesday by a new MACD buy signal. The trading target for TTWO is $20.

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Article printed from InvestorPlace Media, http://investorplace.com/2013/03/trade-of-the-day-take-two-interactive-software-nasdaq-ttwo/.

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