GameStop Corp. (NYSE:GME), a video game retailer on Thursday reported their earnings for fiscal 2015 and provided guidance for 2016. Gamestop projected first quarter earnings of $0.58 to $0.63 which fell short of analyst expectations of $0.71 per share. Gamestop projected revenues to drop between 4% and 7% which fell short of analyst expectations of a gain of 1.3%.
GME Technical Analysis
GME opened trading yesterday at $30.34 and closed trading at $30.27. After closing GME dropped down to $28.15, equivalent to a 7% decrease from the closing price. Taking a look at the daily chart we can see the last time GME traded below this price level was on February 16th when it traded at $28. Taking a closer look at the daily chart we can see that GME has been on an overall decline dating back to November 6th when it traded at $46.82. More recently GME has been rebounding off of its 52 week low price of $24.33 reached on January 20th. GME has a float of 102.49 million shares and traded almost 2 times the normal daily trading volume on Thursday. For trading purposes, I would be looking to take a short position Monday morning at the bell if it opens below $28.50. My stop loss would be $0.25 from my entry position, fearing anything more than that and the stock would look to fill in the gap down.