GameStop (GME) more than ten doubled, now it can do it again.
Updated
Technical Analysis of GameStop Corp. (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 had a wild rise of over 1,000 per cent in less than a year 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 here in the share case GameStop (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 had a wild rise of over 1,000 per cent in less than a year 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 here in the share case GameStop (GME).
Note
PS! There was a mistake here, and big numbers here :-) and it should say that the share rose over 10,000% and not over 1,000%.
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