Technical analysis by wikitrades about Symbol GME: Buy recommendation (7/25/2024)

### GameStop ( GME ) Technical Analysis: A Harmonious Bullish Journey #### Current Financial Data As of the latest market close, GameStop Corp. (NYSE: GME) is trading at $24.43 , reflecting a change of 1.75% from the previous trading session. The stock has a market capitalization of $8.58 billion, with a 52-week range of $9.95 to $64.83. The average 5 day trading volume stands at 12,258,820 shares. #### Long-Term Harmonic Bat Pattern Since reaching an all-time high (ATH) on May 14, GameStop's stock has been slowly carving out a harmonic bat pattern on larger timeframes. This pattern, known for its predictive power, suggests a potential bullish reversal. The bat pattern is characterized by its specific Fibonacci retracement levels, which GME has been respecting, indicating a well-structured technical setup. #### Falling Wedge Formation Around July 1, a falling wedge formation was observed, typically a bullish continuation pattern. This formation indicated a consolidation phase within a broader uptrend, providing a precursor to a potential breakout. True to form, GME began to show signs of upward movement following this pattern, marking the beginning of a new bullish phase. #### Price Movement and Momentum Post- July 1 , GME saw a price retraction to the $23.37 mark. This pullback was instrumental in building bullish momentum as traders accumulated positions, anticipating the next leg of the harmonic pattern. The slow price retraction allowed for the formation of a solid support base, critical for the upcoming bullish journey. #### Resistance and Targets Currently, GME is approaching a significant resistance level at $31.69. Breaking through this level is crucial for further bullish progression. Upon successfully overcoming this resistance, the first target stands at $37.78 . This target is strategically placed just before another anticipated retraction around the $32 mark, providing a healthy correction and consolidation phase before the next bullish surge. The second target is set at $53.44 . Achieving this target would mark a significant milestone in GME's bullish journey, completing the second leg of the harmonic bat pattern. This level aligns with the 161.8% Fibonacci extension from the initial price move, reinforcing its technical significance. #### Technical Indicators Several technical indicators support the bullish outlook for GME: .**Relative Strength Index (RSI)**: The RSI is currently trending upwards, suggesting increasing buying pressure. **Moving Averages (MA)**: The 50-day MA is poised to cross above the 200-day MA, forming a 'Golden Cross', typically a bullish signal. **Volume**: Trading volume has been increasing, confirming the bullish momentum as more traders participate in the rally. #### Conclusion GameStop ( GME ) is currently in a technically significant phase, with multiple bullish indicators aligning to suggest further upward potential. The formation of a harmonic bat pattern, coupled with the recent falling wedge breakout and subsequent price movements, sets the stage for a bullish continuation. Traders should watch the key resistance level at $31.69 closely, as breaking this would open the path towards the first target at $37.78 and potentially the second target at $53.44. As always, while the technical indicators provide a strong case for a bullish outlook, traders should remain vigilant of market conditions and news that could impact the stock's performance. Happy trading! --- *Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.*