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Technical Analysis Continued: GameStop (GME)

Started by Jorge · 10 months ago

So yeah.. GME broke above the $60 resistance and pulled away to about $61 and change before pulling back the past couple of days. First, here are a couple of different charts, one showing a 5 minute time spread with GME on the “breakout” Tuesday and the other a daily ... Continue reading »

2 comments

  • JC

    1 year ago

    well nobody could argue with the gme chart's consistent uptrend, no alarming spikes, but the fundamentals concern me. PE 44 and peg @1.8... that seems hard to sustain for a retailer, no matter how hot the product they're selling is. the long term trend for all media is digital distribution, that leaves for low barriers to entry and distribution by the game makers themselves.
    reply
  • Jorge

    1 year ago

    Normally, I'd worry about the fundamentals as well. While I think regardless of your trading style you need to have a bit of both technicals and fundamentals, I'll let the market makers decide when a stock's become fundamentally overheated. I used to trade based on fundamentals and I was burned badly. If the market makers say GME's fundamentally hot, I'll see it on the charts and run like the wind.

    I agree though. Sooner, rather than later, we'll see more and more digital distributions which, at least I would think, could help lower the costs of games somewhat. I know some places such as Digital Downloads have popped up, but I couldn't see paying full price for a game plus a downloading fee when I could go to the stores and pick up the game for the exact same price with the original CD and other goodies.
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