TTWO Primed For Breakout After Completing Cup Pattern

TTWO chart

I opened a quarter position in TTWO today.

The numbers in the chart above corresponds to my thinking as to why TTWO is ready to start ripping off a long string of new 52 week highs.

  1. Chart starts to consolidate
  2. We get a shakeout
  3. Followed immediately by days of high volume institutional buying
  4. Cup forms with consolidating price action on decreasing volume, causing a breakout
  5. The breakout causes a cheat handle to form with volume below the 50 day average
  6. Volume contracts even further on very narrow price action causing a pivot point
  7. The stock breaks out on high volume and starts moving up slowly on low volume
  8. Volume starts to increase and the price is moving faster to the upside

I'm not worried that the cup didn't form a proper handle. I would be concerned if the right side ran up sharply but this has tennis ball action to it. It looks very healthy to me.

I also want to note that on 12/9 the NASDAQ pulled back sharply but TTWO showed some strength. It had gapped down overnight but pulled back to close at it's exact closing price from the day before.

I'm hoping to see the stock go on a little tear followed by a normal pullback before jumping up to new highs. When that happens I'll add a half position to my current quarter.

Updated Dec 11, 2020 by Scott
Fresh Content

This is a brief explanation of what I saw in TTWO that caused me to increase my position today.

The AMZN chart looks a heck of a lot like TSLA just before it exploded into the $600 range.

Here's a quick explanation about why I opened a position in EXAS as it broke out of its' base.

Crowdstrike just had amazing earnings and their stock gapped up because of it. We are just off the all time high set just a few days back.

Paypal's breakout looked strong today. It finished the day at 98% of it's 30 day volume average and rose just over 3%. The volume seemed to be trending higher than 98% earlier in the day but it started to trail off. I was a little dissapointed in that but the trade still looks promising.

Updated Dec 11, 2020 by Scott