Shanda Games (
GAME) develops, sources and operates online games in the Peoples Republic of China. This stock closed up 1.3% to $4.16 in Tuesday's trading session.
Tuesday's Range: $4.03-$4.17
52-Week Range: $2.68-$6.42
Thursday's Volume: 614,000
Three-Month Average Volume: 1.47 million
>>5 Stocks Ready to Break Out
From a technical perspective, GAME trended up modestly here right off some near-term support at $4 with lighter-than-average volume. This stock recently formed a major bottoming chart pattern, since shares of GAME have found buying interest over the last two months every time it has pulled back to around $3.80 a share. Those pullback have now formed a triple bottom for GAME right above its 200-day moving average of $3.54. Shares of GAME are now starting to move within range of triggering a major breakout trade. That trade will hit if GAME manages to take out its 50-day moving average at $4.44 and then once it clears more resistance levels at $4.85 to $5 with high volume.
Traders should now look for long-biased trades in GAME as long as it's trending above that major support at $3.80 or above its 200-day at $3.54 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.47 million shares. If that breakout triggers soon, then GAME will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 52-week high at $6.42.
To see more stocks that are making notable moves higher today, check out the
Stocks Under $10 Moving Higher
portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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