- The GAW stock has given almost 50% returns in just a year to its investors.
- As the price reaches its high at 12330£, investors fear another nig rejection from the levels.
- A bearish trend is seen forming and a breakdown might wait ahead for the stock.
As a gaming company engaged in manufacturing miniature figures and games, Games Workshop stock has given a massive 50% returns to its investors within a year. The company is booming thanks to the surge in the gaming industry in recent years and the financials look good too. The company has posted constant figures and a steady growth in its reports adding up the investor’s joys.
Technical Analysis for the stock-
The stock has seen a constant and a very strong bullish momentum since last november which has led to the stock reaching its two year high. The stock took rejection from 11830£ recently and has been trading sideways since then.
As long as the stock is above its support at 10240£, there is no need to worry. For a possible long entry, one must wait for the stock to comfortably breach its resistance.
On the other hand, if we see buyers booking their profits and moving out, the price can move slightly downwards to around 9000£ levels. The current setup looks good but one must wait for a few weeks before making any move as the stock needs to cool down at the moment.
The stock on a smaller time frame is comfortably above a soft support at 11200£ and if the stock stays above this price, we can bullish.
There is a huge gap between the two immediate supports which means even a small rejection might lead to a big price dump. The current setup including most indicators suggest a possible increase in the price going ahead. A possible buy entry can be seen if the stock breaches 11380£ with 12330£ as their first target.
A small zone is also seen in the stock between 11250£ and 11480£. The stock currently is stuck in this range and can move anyway from here. The next 2 weeks become crucial for the stock as a break in this zone is what will trigger buyers or sellers in the market.
The volumes in the chart show huge green spikes which means that there are big number of buyers supporting the stock at the moment which decreases the chance of a breakdown soon.
Conclusion:
The stock and the setup look bullish currently but one must wait for a comfortable price level before entering. A little sideway movement is possible as huge buying volumes are needed to breach the current levels. A downside is less likely to happen but one must watch out as we have big targets on the downside.
Important technical levels-
Major support levels- 11200£ followed by 10240£.
Major resistance levels- 11480£ followed by 11880£.
