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GameStop stock will likely remain in the spotlight on Monday, ahead of the video game retailer’s highly anticipated earnings report on Tuesday and recent meme-driven trading activity.
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The stock price formed a bullish engulfing pattern after a small decline in above-average trading volume.
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Investors should keep an eye on key overhead price areas on the GameStop chart around $31 and $40.50, while also keeping an eye on key support levels near $23 and $19.50.
GameStop (GME) shares are likely to remain in the spotlight Monday ahead of the video game retailer’s highly anticipated earnings report, due after the bell on Tuesday, especially after a post from social media influencer “Roaring Kitty“Keith Gill that caused the stock to soar last week.
On Friday, investment company Wedbush reiterated its “underperform” rating and a $ 10 price target for GameStop stock, noting the brick-and-mortar The company’s planned return to growth faces insurmountable barriers amid a shift to digital commerce and game streaming.
Shares in GameStop are up more than 65% year-to-date through Friday’s close, with most of those gains coming in May and June after Gill made several appearances on the stock exchange for the first time in a pandemic era. retailer had posted. meme trading frenzy controlled the shares at the end of 2020 and the beginning of 2021.
Below we break down the technical matters on GameStop’s chart and identify several key price levels to watch amid the video game retailer’s looming quarterly results.
Since the outbreak of a descending triangle Since its inception in late October, GameStop shares have continued to rise.
More recently, the price formed a bullish engulfing pattern following a minor withdraw at above averagetrading volume ahead of the retailer’s quarterly report.
The relative strength index (RSI) confirms positive price momentum with a value above 60, but remains below bought over territory, giving the shares plenty of room to rise further.
Let’s identify some key overhead areas on GameStop’s map to keep an eye on, as well as highlight a few key ones support levels that can play a role during retracements.
An initial move higher could see the shares test key overhead resistance around $31, a level where they could face selling pressure near a trendline that aligns with last month’s swing high with a range of similar prices during the meme-driven inconstancy during May and June.
A decisive one outbreak above that price, a rally towards the $40.50 level could occur. Investors and traders who purchased the shares at lower prices may try to sell shares around those prices.