MGT is now trying to settle into the new range between $3.75 and $4.25. This is a reasonably wide range to trade, but the range expected to get narrower over the next few weeks. The volatility is increasing as the day's range was $3.85 to $4.38. The stock will move out of this range as soon as the range becomes too tight. On Friday, the stock crossed the previous resistance of $4.25 but retracted quickly to take support at $3.85. This indicates an attempt to challenge the highs, but also indicates that the stock is still a few trading sessions away from crossing the hurdle. What is important is that the trading volume was very high (900K) compared with the 3 month average of 129K and the 10 day average of 333K. The stock is above the 200 DMA ($3.89) which is likely to be a support during correction. In case of a deeper correction, $3.30 should hold as it has proven to be a strong support. Some fundamental news related to the patent infringement lawsuit against casino gaming companies, or the recent acquisition of FanTD will help the stock get stronger. The Markman hearing in the case against Caesars Entertainment Corporation (NASDAQGS:CZR), MGM Resorts International, Inc. (MGM), WMS Gaming, Inc. - a subsidiary of WMS Industries, Inc. (WMS), Penn National Gaming, Inc. (NASDAQ GS: PENN), and Aruze Gaming America, Inc. is likely to be held in the second half of this year. Once the date is fixed, the stock may take off with renewed energy. This lawsuit, for infringement of its patent '088, is potentially worth $4.5 billion and is a game changer for the company with a small market cap. Already there was speculation that MGT may be approached by gaming companies for a settlement to avoid the agony of the trials etc. If that happens, there could be a sudden spurt in the stock.