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# GameStop Shares Under Scrutiny Before Financials
### Main Points
* The price of GameStop shares has experienced an increase earlier this week, prior to the video game company’s financial statement scheduled for release after the market closes on Tuesday.
* Last Friday, the stock surpassed the upper trendline of a falling wedge pattern over three months with higher volume than usual, possibly preparing the ground for a rally driven by earnings.
* Stakeholders should monitor key resistance levels on GameStop’s chart around \$29, \$32, and \$37, while also observing significant support levels close to \$22 and \$20.
GameStop (GME) shares are gaining notice as the company gets ready to announce its financial numbers for the most recent quarter.
Experts are predicting earnings per share of 9 cents on revenues of \$1.48 billion. Though, stakeholders are probably more concerned with updates on the company’s investment plan, specifically concerning digital assets.
Last month, GameStop Chairman and CEO Ryan Cohen admitted to receiving a proposal from Strive Asset Management to transform the company’s almost \$5 billion cash reserve into Bitcoin. Cohen has not yet shown if the company will consider the concept. Toncoin (TON) Value Forecast for March 26th
Earlier in February, reports appeared that the company was investigating investments in alternative assets, including Bitcoin and other cryptocurrencies. This came after Cohen posting a picture of himself with Michael Saylor, co-founder of Strategy (MSTR), previously MicroStrategy, the biggest corporate holder of Bitcoin.
GameStop, a favorite among retail traders and meme stock lovers, saw a 3.5% rise to \$25.61 on Monday, increasing gains from the prior week. This indicates speculative buying before the company’s quarterly results. Despite the recent rise, the stock is still down 18% so far this year.
Okay, lets analyze the situation with GameStop shares based on graphical representations.
**Falling Wedge Breakthrough**
On Friday, GameStop shares advanced, breaching the upper limit of a three-month “descending wedge” formation with higher-than-normal trading activity. This might imply that we are about to witness a surge driven by profit updates. The Relative Strength Index (RSI) also recently exceeded 50 again, indicating that the stock is accumulating some impetus.
Nevertheless, there is a contradictory signal: the 50-day moving average (MA) is nearing a drop *under* the 200-day moving average. This generates what is known as a “death cross,” which is frequently regarded as a signal that prices may decrease.
Let’s determine some crucial zones to monitor if GameStop shares rise, as well as some significant support thresholds if they fall.
**Ascending Trend Objectives**
* **Approximately $29:** This zone could function as resistance because of a trendline connecting the peak from last July with a sequence of price marks on the chart from November to February.
* **Approximately $32:** If the stock surpasses $29, it may proceed toward $32. Short-term dealers may wish to contemplate securing gains around this threshold, as it is adjacent to the peaks from November and December.
* **Approximately $37:** To assess prospective price objectives beyond this year’s peak, analysts are employing Fibonacci extension tiers based on the stock’s upward movement from October to January, forecasting from Friday’s breakout position.
**Significant Support Threshold**
* **Approximately $22:** A botched breakthrough could revert the stock back down to approximately $22.
The zone on the graph is expected to act as a support near the February nadirs, which aligns with a level trendline from the prior year’s May.
A breach under this point might pave the way for reassessing the inferior support threshold of the $20 emotional mark. At this stage, which is akin to the string of troughs created on the graph from August through October, and also to the zone prior to the meme-induced breakout divergence in the prior year’s May, traders might hunt for entry opportunities.
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