GME heading to $47 after leaving the current corridor of $26-30
For GME, there are currently several bullish indicators from a technical perspective. However, in my opinion, we can break it down a bit.
At the moment, we are in the corridor between $26 and $30 since 11/07/24. The $26 level now acts as a very strong support zone, while $29.80/$30 is historically one of the strongest resistance levels for GME. Whenever GME has broken through this zone with volume, it has experienced a sharp upward movement. Additionally, GME has not had a weekly close above $30 since August 2022. This zone is one of the most critical for the bears.
Once we leave the corridor between $26 and $30, we should relatively quickly reach the first target around $47. The higher resistance levels are $63, $80, and $120, with $80 likely being the strongest resistance after $30. Once $80 is breached, we enter 'unchartered territory,' and all-time highs come within reach.
Given the consolidation period so far, I anticipate a breakout towards $47 in the near future.
At the moment, we are in the corridor between $26 and $30 since 11/07/24. The $26 level now acts as a very strong support zone, while $29.80/$30 is historically one of the strongest resistance levels for GME. Whenever GME has broken through this zone with volume, it has experienced a sharp upward movement. Additionally, GME has not had a weekly close above $30 since August 2022. This zone is one of the most critical for the bears.
Once we leave the corridor between $26 and $30, we should relatively quickly reach the first target around $47. The higher resistance levels are $63, $80, and $120, with $80 likely being the strongest resistance after $30. Once $80 is breached, we enter 'unchartered territory,' and all-time highs come within reach.
Given the consolidation period so far, I anticipate a breakout towards $47 in the near future.
Note
GME looks very good on the 1D chart. Currently, we are consolidating downward within a bull flag at lower volume. I expect a rise in trading volume and price toward $36-37 in the near future.
Trade active
GME continues to look very good on the 1D chart and is still in the channel or bull flag I have drawn. According to the previous retracement, we should be on the verge of an upward breakout. If we sustainably break through the <$30 range to the downside, the structure is superfluous. Based on the chart pattern and the strong reaction on Friday, however, I assume that the structure will be resolved on the upside.
GME also looks very bullish on the 1W chart. The former strong resistance at ~$30 (in my chart the line at $29.82) has apparently been turned into support. The doji candle in a bull trend, in which GME finds itself, usually only indicates a short trend pause, which is followed by a trend continuation.
Overall, the GME chart continues to look very, very good. We would like to (finally) see an explosion in trading volume at GME, which in my opinion should be accompanied by a sharp rise in price.
Note
Short-term structure has successfully resolved to the upside (breakout from the bull flag as hoped). Unfortunately, a double top has formed here at ~$34.37, which fundamentally indicates a short-term consolidation. I have added an ascending triangle to the chart, I can delete the bull flag for the next update.
Without external factors (DFV post or the like), I would guess a short-term consolidation within the ascending triangle and the formation of a cup and handle pattern before a breakout >$34.37.
Note
The cup-and-handle structure has begun to form at low trading volumes. This structure could either have already bottomed and we follow the structure up on Friday (not unlikely in my opinion; low volatility and low volume in this option) or the bottom of the handle could still extend to the bottom of the ascending triangle (around $31.50). Accordingly, the formation of the handle would take a little longer.
The cup-and-handle structure within the ascending triangle is, and yes, I repeat myself, very bullish. The cup-and-handle structure has a fairly high success rate and above all GME loves ascending triangles.
Breakout from this structure should finally lead us to the first target of $36/37.
Nota bene: there is always ‘the danger’ of a tweet from DFV. In this case, the above structure is invalid and no significant handle will form, but we would probably immediately take off to the upside.
Trade closed: target reached
Cup-and-handle structure invalid and ascending triangle broken out to the downside. In addition, the daily trigger at $30.45 was broken with a bang.
Interesting volatile price action with increased, but not extraordinary volume, so that we are back in our familiar corridor between $26 and $30.
$26 has been a strong support zone for many weeks and months, previously a resistance zone. This support should hold, interestingly the weekly trigger lies just below it at $25.73, which should also provide strong support.
I'm hoping for a fast flush to test support at 26ish and then a more stable move higher.
Note
Took the wrong status update; target is not 'reached', but we are merely stalling before we should move higher. Bad sign would be losing the Weekly trigger at $25.77 like we did with the Daily trigger. Hail mary support at $22.96 (Monthly trigger).
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.