220 0
TTWO closed higher today following a mixed earnings report and soft guidance. The stock briefly traded down to $95 post-close yesterday before rallying through today's session. Highly-correlated competitors, EA and ATVI , also posted nice daily gains as investors seem generally optimistic on the video game sector. However, this chart of the top three names in the space looks like a good selling opportunity now that we're through earnings .

Using TradingView's advanced charting abilities, I created a composite of TTWO , EA , and ATVI which is indexed to 30,000. The sector had been in a strong, tight uptrend dating back to 2012 before breaking through trendline support as well as the 200-day moving average last October. Despite today's strong performance, we can see that the composite is still trading below the moving average and is contained within a contracting range. I believe the ongoing sideways price action is a Wave 4 triangle within an impulsive sequence off the high. Look for the sector to stall in coming weeks and break lower in Wave 5 - a move which should net at least 10% to the downside. Initiating short positions on TTWO , EA , and ATVI as long as the composite stays below the 200-day moving average.
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing TradingView Coins My Support Tickets Get Help Ideas Published Followers Following Private Messages Chat Sign Out