GameStop shares surged nearly 8% in extended trading on Thursday following a report that the company is considering investing in bitcoin and other cryptocurrencies. The stock appears poised to break out above its falling wedge pattern, setting the stage for potential gains.
Key areas to watch include $29, $32, and $42, with investors monitoring these levels closely. A support level near $25 is also important, particularly during pullbacks. GameStop shares have risen 85% over the past year, driven in part by social media influencer “Roaring Kitty,” aka Keith Gill.
The stock has consolidated within a falling wedge pattern since hitting its seven-month high in January. However, with the relative strength index rising from oversold levels earlier this month, improving price momentum suggests that the breakout may occur. A potential target above this year’s high is around $42, but investors should be cautious of selling pressure near $29 and monitor support at $25 during retracements.
Source: https://www.investopedia.com/watch-these-gamestop-price-levels-as-stock-pops-after-report-of-bitcoin-investment-plan-11679855