Shares of Take-Two Interactive Software (TTWO) are now down less than 1% on Monday, following some disheartening news for its developers.
Game-play footage leaked from its highlight anticipated Grand Theft Auto VI.
On the plus side, the stock has clawed back. At its low, the shares were down 2.5% shortly after the open. The stock in the premarket was lower by as much as 6.5%.
Still and all, the run for videogame stocks this year has not been easy.
Shares of Take-Two Interactive are down 19% over the past 12 months and 31% this year. Electronic Arts (EA) has fared better — down 7.9% so far in 2022 — but has fallen more than 8% in the past month.
Videogame stocks have surely been struggling lately. Let’s focus on a key member of the group.
Trading Take-Two Stock After GTA IV Leak
Scroll to Continue
The chart for Take-Two stock is pretty cut and dried: The shares are range-bound between support at $118 to $120 and resistance near $133.
In that range, the shares continue to chop around the 10-day, 21-day and 50-day moving averages. Take-Two has had no real direction since its sharp rebound off the $102 area.
The stock dove lower in May, carved out a low in the $100s over a three-day span, then surged higher on earnings. Amid that post-earnings pop, Take-Two shares were able to reclaim the $118 to $120 zone, which has gone on to become strong support.
This morning’s dip filled the gap from earlier this month at $120.62. With a bounce under way, there’s not much for traders to do until the range breaks.
Put another way, buyers are likely to step in around $118 to $120 and sellers are likely to step in around $132 to $135.
If support gives out and Take-Two stock trades lower, look to the gap-fill level at $112.25 as one potential destination. Below that opens the door back down to $102.
If resistance gives out, look first for a test of the August high near $137.50. Above that opens the door to the $142 to $144 area, which contains the 200-day and 200-week moving averages, as well as the weekly VWAP measure.