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The Charts of Take-Two Are Poised for a Major Upside Breakout

Let's review those charts and the indicators.
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During Friday night's Mad Moneyprogram, Jim Cramer told viewers that he expected Take-Two Interactive Software (TTWO) to report strong results this Wednesday. Let's check out the charts.  

In this daily bar chart of TTWO, below, we can see that rallies have failed a number of times in the $130-$135 area over the past 10 months. Prices are knocking on new highs again this month and with earnings due out on Wednesday we could see an upside breakout soon.

Prices are above the rising 50-day moving average line and above the slower-to-react 200-day moving average line. If prices can break out over $135 we should soon see the 50-day line cross above the 200-day line for a bullish golden cross.

The On-Balance-Volume (OBV) line has taken the lead and has already broken out to a new high foreshadowing new price highs. The Moving Average Convergence Divergence (MACD) is in a bullish alignment.  

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In this weekly bar chart of TTWO, below, we can see that potential chart resistance extends up to the $140 area and has been operating for almost two years. Prices are above the rising 40-week moving average line.

The weekly OBV line is pointed up and confirms the price action. The weekly MACD oscillator is in a bullish position. 

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In this first Point and Figure chart of TTWO, below, we can see a potential upside price target in the $164 area.  

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In this second Point and Figure chart of TTWO, below, we used weekly price data and there are two key points. First, a trade at $140.77 will be a very important upside breakout, and second the $170 area is a longer-term price target. 

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Bottom line strategy: I have no special knowledge of what TTWO will report in the way of earnings but the charts are bullish and an upside breakout should be coming soon. Trade TTWO from the long side risking below $125 for now.

(Take-Two Interactive Software is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells TTWO? Learn more now.)

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