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The share rose from 1 to 120 dollars in less than a year. Now it could face a sharp rise again. StockCharts365.com has taken a closer look at one of traders' favorite US stocks: GameStop Corp. (GME).


[04 July 2024]


Today, 04 July 2024, StockCharts365.com has taken a closer look at one of traders' favorite US stocks: GameStop Corp. (ticker at NYSE: GME).


The stock may now be at a favorable level to buy it at believes StockCharts365.com.


The share rose from 1 to 120 dollars in less than a year. Now it could face a sharp rise again.


 

First, a little about GameStop Corp. (ticker at NYSE: GME)


GameStop Corp is a U.S. multichannel video game, consumer electronics, and services retailer.


The company operates across Europe, Canada, Australia, and the United States.


GameStop sells new and second-hand video game hardware, physical and digital video game software, and video game accessories, mainly through GameStop, EB Games, and Micromania stores and international e-commerce sites.


The majority of sales are from the United States.


For more information about the company, visit their website here:



 

Technical Analysis of GameStop Corp. (ticker at NYSE: GME)


Technical Analysis of GameStop Corp. (ticker at NYSE: GME):


When we look at the bigger picture and weekly chart for GameStop Corp. (ticker NYSE: GME) then we now see a very interesting technical picture for the stock.


The share rose from 1 to 120 dollars in less than a year. Now it could face a sharp rise again, like from the end of March 2020 to the end of January 2021 (cf. weekly chart).


GME shares rose from under USD 1.00 to a high of around USD 120.00, before a major correction came down for the stock to a low of around USD 10.00.


Then the share recently had a strong rise again to above USD 50.00, and then fell back somewhat again to today around USD 24.00.


The share now finds good technical support around the USD 24.00 level, and the share has also triggered a strong technical buy signal from breaking up from a large falling wedge consolidation formation (cf. weekly chart here).


Thus, the GameStop stock may now be at a very interesting level to buy the stock at.


According to technical analysis theory, an upswing after breaking up from such large consolidation formations (and as here breaking up from a very large falling wedge consolidation formation for GME) is often expected to have a similar upswing as the upswing that preceded the consolidation formation.


This is marked in the chart here with green dashed lines, and it now indicates a potential for the GME share up to around USD 2,000 - 3,000 in the 9-12 month term.


So GameStop Corp. (GME) may now be at a potentially very favorable level to buy the share at, and the potential could be enormous.


What could change the now very positive technical picture for GameStop stock would be if it were to break down below an important technical support level around USD 14.00.


With today's share price around USD 24.00 and a stop-loss around USD 14.00 and a possible potential for the share around USD 2,500, yes, there is now a good risk-reward ratio here in the share case GameStop (GME).


 

NB! Remember to have read and understood the disclaimer.

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