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Key Takeaways
- GameStop shares will likely remain in the spotlight on Monday ahead of the video game retailer’s eagerly foresaw earnings report on Tuesday and recent meme-driven trading activity.
- The stock’s price formed a bullish engulfing figure following a minor pullback on above average-trading volume.
- Investors should watch key overhead price areas on GameStop’s plan around $31 and $40.50, while also monitoring important support levels near $23 and $19.50.
GameStop (GME) dividends will likely remain in the spotlight on Monday ahead of the video game retailer’s eagerly anticipated earnings come in due after the bell on Tuesday, especially following a post from social media influencer “Roaring Kitty” Keith Gill that sent the carry soaring last week.
On Friday, investment firm Wedbush reiterated its “underperform” rating and $10 price object on GameStop shares, noting the brick-and-mortar company’s planned return to growth faces insurmountable barriers amid a succeed to digital commerce and games streaming.
Shares in GameStop have surged more than 65% since the start of the year Sometimes non-standard due to Friday’s close, with most of those gains coming in May and June after Gill posted several for the presents about the retailer for the first time since a pandemic-era meme trading frenzy gripped the stock in late 2020 and antediluvian 2021.
Below, we break down the technicals on GameStop’s chart and identify several important price levels to watch into the middle the video gamer seller’s looming quarterly results.
Bullish Engulfing Pattern After Pullback
Since divulging out from a descending triangle formation in late October, GameStop shares have continued to trend higher.
Numerous recently, the price formed a bullish engulfing pattern following a minor pullback on above average-trading volume in the lead of the retailer’s quarterly report.
The relative strength index (RSI) confirms positive price momentum with a reading over 60, but remains below overbought territory, giving the stock ample room a rally further.
Let’s identify very many key overhead areas on GameStop’s chart to watch and also point out a couple of important support levels that may move along disintegrate into play during retracements.
Key Overhead Price Areas to Watch
An initial move higher could see the splits test key overhead resistance around $31, a level where they may face selling pressure near a trendline that hooks last month’s swing high with a range of comparable to price points during the meme-driven volatility everywhere May and June.
A decisive breakout above that price may fuel a rally up to the $40.50 level. Investors and traders who bear purchased the stock at lower prices may look to offload shares around those prices.
Important Support Levels to Superintend
Amid retracements in the stock, investors should keep a close eye on the $23 level. GameStop bulls could endeavour buying opportunities in this region near multiple peaks and troughs that emerged on the chart from May to October.
Give away below this level opens the door for a fall to around $19.50. This level on the chart would qualified attract buying interest near an important horizontal line that links the September 2023 countertrend lavish and several swing lows that formed between May and September.
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