The stock price has surged rapidly, nearly reaching the $30 mark, after a strong bullish shift emerged following the company’s latest earnings report. At first glance, the results were mixed: sales came in at $1.28 billion for Q4 2024, down from $1.8 billion in the same quarter of 2023. However, net income held strong at $131 million, compared to $63 million a year earlier. This disparity in results created volatility in the stock price. Adding to the bullish momentum was the announcement that GameStop plans to sell assets to create a strategic reserve in Bitcoin, which helped fuel the rally in recent hours.
Breakout from Bearish Channel:
The stock had been trading within a downward channel since early January, but recently broke out with a strong bullish move. The speed and strength of this breakout may lead to short-term selling corrections as the price stabilizes.
RSI Indicator:
The RSI line is now approaching the overbought zone around the 70 level. As price action continues at these levels, the market may be showing signs of imbalance due to excessive buying pressure, which could open the door to bearish corrections in the upcoming sessions.
Key Levels to Watch:
By Julian Pineda, CFA – Market Analyst
Breakout from Bearish Channel:
The stock had been trading within a downward channel since early January, but recently broke out with a strong bullish move. The speed and strength of this breakout may lead to short-term selling corrections as the price stabilizes.
RSI Indicator:
The RSI line is now approaching the overbought zone around the 70 level. As price action continues at these levels, the market may be showing signs of imbalance due to excessive buying pressure, which could open the door to bearish corrections in the upcoming sessions.
Key Levels to Watch:
- $31: A nearby resistance level, marking the highest price zone reached earlier this year. A sustained break above this level could trigger a strong short-term uptrend.
- $25: A support level aligned with the top of the previous bearish channel and the 61.8% Fibonacci retracement. This could act as a tentative area for a short-term pullback.
- $19: A distant support level, corresponding to the lows from September 2024. If selling pressure brings the price back to this level, it could reactivate the broader bearish channel seen in recent weeks.
By Julian Pineda, CFA – Market Analyst
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.
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.