Game Trader: Nintendo Chart Update

Asif Khan, CEO of Shacknews, has issued an update to his buy recommendation on Nintendo's stock.

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Shares of Nintendo (NTDOY) have an active weekly buy signal right now.

The first level the stock needs to hold is $26.22/share. That will keep this weekly reversal strategy signal active. Granted this signal will only be actionable for one more day.

The second level to watch is $24.44/share. This was last quarter's low. If the stock breaks below that level, shareholders may be in for a lot of pain as that would be a quarterly "inside bar and down" sell signal. Conversely, a breakout above $32.83/share would create a quarterly "inside bar and up" buy signal. A breakout above that level could push shares back to test last year's high of $38.25/share.

Stock chart screenshots courtesy of TC2000.com

That is the technical setup for the stock today. Good luck trading, Shackers.

Check out my previous video on Nintendo's stock for my fundamental take on the company.

For more great videos, be sure to subscribe to Shacknews on YouTube.

GLOSSARY

INSIDE BAR

A candlestick formation that occurs when the entire price range for a given security falls within the price range of the previous period.

REVERSAL STRATEGY

A candlestick formation that occurs after an inside bar when a stock breaks out or below the previous period followed by a breakout of the range. In the case of Nintendo last week, the stock dipped one penny below the previous inside week's bar and then broke out above $26.22/share this week.

HELPFUL LINKS

For more information regarding the technical trading strategy that I use follow Rob Smith from T3 Live.

Find out more about the charting software used in this video at the Official TC2000 Website.

If you found any of the terms in the video confusing, please check out Investopedia for much more educational information.

Full Disclosure:

At the time of this article, Asif A. Khan, his family members, and his company Virtue LLC had the following positions:

Long Nintendo via NTDOY ADR

Long Apple via AAPL shares and options

CEO

Asif Khan is the CEO and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

From The Chatty