Take-Two Interactive Software, Inc. (TTWO) , is scheduled to announce March-quarter earnings results on Monday, May 13, after market close. Will it bounce or will it be dragged down with the broad market weakness we are seeing Monday?
Let's check the charts.
In the daily bar chart of TTWO, below, we can see some potential basing action from December. Prices made a low at the end of February and a higher low in April. There is a high in March and higher high made in May. TTWO is above the rising 50-day moving average line but still below the declining 200-day line.
The volume information, however, does not fit the pattern of a base in that it is not expanding from early March. The daily On-Balance-Volume (OBV) pattern does show improvement from a February low but it could be stronger. The daily Moving Average Convergence Divergence (MACD) oscillator moved above the zero line briefly in April and again this month but it is narrowing toward a potential bearish crossover.
In the weekly bar chart of TTWO, below, I see a potential large top formation from 2017 -- a non-textbook-looking head-and-shoulders top pattern. The rally this year on TTWO could be the right shoulder. Prices are below the declining 40-week moving average line.
The weekly OBV line shows a downtrend from early 2018 and the MACD oscillator only managed a cover shorts buy signal last month.
In this Point and Figure chart of TTWO, below, we can see a potential long-term price projection of $130 but a decline to $98.39 will weaken this chart.
Bottom-line strategy: While we can see some potential basing price action the longer-term price chart is keeping us cautious and side-lined. Anything could happen with its earnings numbers tonight but I prefer a rain check.