Watch These GameStop Price Levels After ‘Roaring Kitty’ Post Ahead Of Earnings Report

GameStop (GME) shares will seemingly stay within the highlight on Monday forward of the online game retailer’s eagerly anticipated earnings report due after the bell on Tuesday, particularly following a put up from social media influencer “Roaring Kitty” Keith Gill that despatched the inventory hovering final week.

On Friday, funding agency Wedbush reiterated its “underperform” score and $10 worth goal on GameStop shares, noting the brick-and-mortar firm’s deliberate return to progress faces insurmountable limitations amid a shift to digital commerce and video games streaming.

Shares in GameStop have surged greater than 65% because the begin of the 12 months by means of Friday’s shut, with most of these positive aspects coming in May and June after Gill posted a number of occasions in regards to the retailer for the primary time since a pandemic-era meme buying and selling frenzy gripped the inventory in late 2020 and early 2021.

Below, we break down the technicals on GameStop’s chart and determine a number of necessary worth ranges to observe amid the video gamer vendor’s looming quarterly outcomes.

Bullish Engulfing Pattern After Pullback

Since breaking out from a descending triangle formation in late October, GameStop shares have continued to development increased.

More lately, the worth fashioned a bullish engulfing sample following a minor pullback on above average-trading quantity forward of the retailer’s quarterly report.

The relative energy index (RSI) confirms optimistic worth momentum with a studying above 60, however stays under overbought territory, giving the inventory ample room a rally additional.

Let’s determine a number of key overhead areas on GameStop’s chart to observe and in addition level out a few necessary assist ranges that will come into play throughout retracements.

Key Overhead Price Areas to Watch

An preliminary transfer increased might see the shares take a look at key overhead resistance round $31, a stage the place they might face promoting stress close to a trendline that connects final month’s swing excessive with a spread of comparable to cost factors through the meme-driven volatility all through May and June.

A decisive breakout above that worth could gas a rally as much as the $40.50 stage. Investors and merchants who’ve bought the inventory at decrease costs could look to dump shares round these costs.

Important Support Levels to Monitor

Amid retracements within the inventory, buyers ought to preserve a detailed eye on the $23 stage. GameStop bulls might search shopping for alternatives on this area close to a number of peaks and troughs that emerged on the chart from May to October.

Selling under this stage opens the door for a fall to round $19.50. This stage on the chart would seemingly entice shopping for curiosity close to an necessary horizontal line that hyperlinks the September 2023 countertrend excessive and a number of other swing lows that fashioned between May and September.

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As of the date this text was written, the writer doesn’t personal any of the above securities.