GameStop (GME) shares will likely remain in the spotlight on Monday ahead of the video game retailer’s eagerly anticipated earnings report due after the bell on Tuesday, especially following a post from social media influencer “澳洲幸运5官方开奖结果体彩网:Roaring Kitty” Keith Gill that 澳洲幸运5官方开奖结果体彩网:sent the stock soaring last week.

On Friday, investment firm Wedbush reiterated its “澳洲幸运5官方开奖结果体彩网:underperform” rating and $10 price target on GameStop shares, noting the 澳洲幸运5官方开奖结果体彩网:brick-and-mortar company’s planned return to growth faces insurmoꦦuntable barriers🧔 amid a shift to digital commerce and games streaming.

Shares in GameStop have surged more than 65% since the start of the year through Friday’s close, with most of those gains coming in May and June after Gill posted several times about the retailer for the first time since a pandemic-era 澳洲幸运5官方开奖结果体彩网:meme trading frenzy gripped the stock in late 2020 and early 2021.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on GameStop’s chart and identify several important price levels to watch aꦦmid the video gamer seller🍌’s looming quarterly results.

Bullish Engulfing Pattern After Pullback

Since breaking out from a 澳洲幸运5官方开奖结果体彩网:descending triangle format𒅌ion in late October, GameStop shares have continued to trend higher.

More recently, the price formed a 澳洲幸运5官方开奖结果体彩网:bullish engulfing pattern following a minor pullback on above average-澳洲幸运5官方开奖结果体彩网:trading volume ahead of the retailer’s quarterly report.

The 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) confirms positive price momentum with a reading above 60, but remains below 澳洲幸运5官方开奖结果体彩网:overbought terr𓃲ito🧜ry, giving the stock ample room a rally further.

Let’s identify several key overhead areas on GameStop’s chart to watch and also point out a couple of important 澳洲幸运5官方开奖结果体彩网:support levels that may come into play during retracements.

Key Overhead Price Areas to Watch

An initial move higher could see the shares test key overhead 澳洲幸运5官方开奖结果体彩网:resistance around $31, a level where they may face selling pressure near a trendline that connects last month’s 澳洲幸运5官方开奖结果体彩网:swing high with a range of comparable to price points during the meme-driven 澳洲幸运5官方开奖结果体彩网:volatility throughout May and June.

A decisive breakout above that price may 🔜fuel a rally ꧃up to the $40.50 level. Investors and traders who have purchased the stock at lower prices may look to offload shares around those prices.

Important Support Levels to Monitor

Amid retracements in the stock, investors should keep a close eye on the $23 level. GameStop bulls could seek buying opportunities in this region near multiple 澳洲幸运5官方开奖结果体彩网:peaks and troughs that emerged on the chart from May to October.

Selling below this level opens the door for a fall to around $19.50. This level on the chart would likely attract buying interest near an important 澳洲幸运5官方开奖结果体彩网:horizontal line that links the September 2023 澳洲幸运5官方开奖结果体彩网:countertrend high and several 澳洲幸运5官方开奖结果体彩网:swing lows that formed between May and September.

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