How Will GameStop Traders React to Earnings?

Let's take a close look at the GME charts.
Stocks quotes in this article: GME

GameStop Corp. (GME) is set to report their latest quarterly numbers after the close Wednesday. I have no special knowledge of what they will report and no insight into any message board guesses or strategy. However, the charts below are weak so I would be cautious.

In the daily Japanese candlestick chart of GME, below, we can see that the shares have been weakening (red or bearish candles) in recent sessions. The more sensitive 50-day moving average line has a flat or neutral slope.

The daily On-Balance-Volume (OBV) line shows weakness from early June telling us that sellers of GME have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has narrowed in recent days and could cross to the downside soon.

 
In this daily Point and Figure of GME, below, we can see a downside price target in the $153 area.
 
 
Bottom-line strategy: GME's charts and indicators are not currently projecting strength. Traders should be flat ahead of earnings.
 
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TAGS: Investing | Stocks | Technical Analysis | Retail | Video Games | Gaming | Earnings Preview

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