But after a strong October, TTWO appears to be setting up for a significant breakout that yields a healthy upside price target.
After reaching a peak of around $170 in early February, the stock pulled back to just below its 200-day moving average.
We can determine an initial upside target simply by measuring the price range of the basing pattern, in this case from $140 to $170.
That 61.8% retracement sits right around $167, forming the upper end of the price range we outlined on the daily chart.
So a breakout above $170, while an important signal on the daily chart based on the basing pattern, also represents a significant break above a major Fibonacci retracement level.
Persons:
TTWO, Alan Shaw, David Keller
Organizations:
CMT, CNBC, NBC UNIVERSAL