When I was a kid, I loved to play video games. I spent endless hours on Mario Bros, FIFA, and Call of Duty. Those games were my favorites!
Now, I see them in a whole new light—as an opportunity to profit in the market.
Gaming and eSports are a hot spot right now, and the stocks tied to it are embarking on new uptrends.
A great way to tap into this space is through the VanEck Video Gaming and eSports ETF $ESPO.
After over three years of absolutely no progress, ESPO is finally breaking out to new all-time highs.
Buyers are in full control and as long as we’re above the 2021 highs, gaming is a group that I want to lean on for long exposure.
When I dive into the holdings, I see a lot of great-looking setups that make this space even more attractive.
Let’s hit the charts.
First up is Electronic Arts Inc $EA:
Known for blockbuster franchises like FIFA (EA Sports FC), Madden NFL, The Sims, and Battlefield, EA is one of the most dominant and innovative players in the industry.
The stock is making new all-time highs after coming off a six-year consolidation.
Now, the path of least resistance is higher.
When we talk about Take-Two Interactive $TTWO, the first game that comes to mind is Grand Theft Auto.
Probably one of the best video games in history.
TTWO is completing a structural trend reversal as it pierces through the 61.8% retracement level with authority.
I don’t see any reason it can't reach new highs in the foreseeable future.
Last but not least is Roblox $RBLX:
On October 31st, RBLX ripped 20% on the heels of earnings, gapping through the upper bounds of a textbook rounding bottom formation.
Fast forward to today, and price is coiling in a tight range above the breakout level as it digests recent gains.
As long as we’re above 48, a trend reversal is underway for RBLX.
I like getting long video game stocks here, and these three are my vehicles of choice right now.
I’m sure there will be more in the future, and I’ll be right here talking about it.
In the meantime, let me know what your favorite video game is. Mine is Mario Bros.
Have a good weekend!
Alfonso
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