Take-Two Interactive Software ( TTWO) is scheduled to report its latest quarterly figures to investors after the close of trading Monday. Let's take a look at the charts and indicators of this videogame company to see if there is risk or opportunity.
In our last review of the charts of TTWO on Nov. 5, we wrote that " After the sprint higher that TTWO has made in recent weeks, we are likely to see a period of sideways price action. Aggressive traders and gamers could go long TTWO at $185 risking to $174. On the upside look for $236 for now."
In the updated daily bar chart of TTWO, below, we can see that the shares quickly reversed direction in November and plunged to early December before a bounce and then a new low in January. Prices have rebounded in recent sessions but remain below the late December/early January highs. TTWO is above the 50-day and 200-day moving average lines but their slopes have yet to turn positive.
The On-Balance-Volume (OBV) line shows strength from late September telling us that buyers of TTWO have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has improved but it is still just below the zero line. 
In the weekly Japanese candlestick chart of TTWO, below, we see a mixed picture. Prices broke the September low but did it with a long lower shadow as the lower prices were rejected. Prices have rallied above the 40-week moving average line but the slope of the line has not turned positive.
The weekly OBV line has lost ground the past three months and that is not a sign of strength. The MACD oscillator has yet to sustain a move above the zero line this year.
In this daily Point and Figure chart of TTWO, below, we can see that the software is projecting a potential upside price target in the $193 area.
In this weekly Point and Figure chart of TTWO, below, we can see a potential upside price target in the $217 area.
Bottom-line strategy: The shares have rebounded strongly from their early January nadir, but in this current "unsettled" market environment only huge earnings beats are getting respect. Traders who understand risk could probe the long side of TTWO with a small position ahead of the close. I am still unnerved about the bearish reaction PayPal ( PYPL) had to earnings when the charts looked positive to me.
