For a stock that was so widely loved and hated at the same time, GameStop (GME) has sort of wilted away from the public eye. Once the center of the Reddit r/WallStreetBets, GME shares have been trading in the $20 for most of the last year, save for a brief stop into the $30s. After the bell Tuesday, GME announced earnings of 30 cents on revenues of $1.28 billion. Important to note, free cash flow came in at $158.8 million this year versus a loss of $18.7 million last year.
That wasn’t the biggest news of the day though. Biggest news was that the board unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset, opening the door for GME to hold Bitcoin on its balance sheet. Probably would have been great to add that BTC a few years ago but better late than never I suppose. GME has over $4.7 billion in cash right now. A hefty sum for a company with a market cap of $11.35 billion.
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding GameStop’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>GameStop Corp. (GME) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
