The stock has traversed 7.2% today, low to high, and is trading at about $19.17, a resistance level.
The adx stands at 36, but has been declining since March 2. The sto today moved into overbought territory. The macd is in its fourth trading day in bull mode.
Earnings is on March 18, one day before the March options have their final day of trading. So this is a very speculative, short-term trade.
You are here:
- Resistance
- $24.10, 25.7%
- $20.90, 9%
- $19.50, 1.7%
- Now $19.17
- Support
- $18.85, -1.7%
- $18.27, -4.7%
- $17.12, -10.7%
I would trade it as either a bull call spread (40 cent debit), short the $19 strike and long the $20, which benefits from time decay. The breakeven is $19.40, maximum profit is 60 cents and max loss is the 40 cent premium.
Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic
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Topic: GameStop Corp. gaming
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