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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, which sent the stock soaring last week .
On Friday, investment firm Wedbush reiterated its “underperform” rating and $10 price target for GameStop shares, noting that the brick-and-mortar company’s planned return to growth faces insurmountable barriers amid a shift to digital commerce and streaming games.
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 first posted about the retailer several times since gripped the meme business in the pandemic era. the stock at the end of 2020 and beginning of 2021.
Below, we provide an overview of the technical characteristics of the GameStop chart and identify several key price levels to watch amid the video game retailer’s looming quarterly results.
Since breaking out of a bearish triangle formation in late October, GameStop shares have continued to rise.
More recently, the price formed a bullish engulfing pattern after a small drop in above-average trading 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 the overbought area, leaving the stock with plenty of room for a further rally.
Let’s identify some key overhead areas on GameStop’s chart to watch, as well as point out some key support levels that could come into play 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 connecting last month’s swing high to a range of comparable prices during the meme-driven volatility of May and June. .
A decisive breakout above that price could fuel a rally to the $40.50 level. Investors and traders who purchased the shares at lower prices may try to sell shares around those prices.
