GameStop stock price was rejected for the second time from the $350 area but kept a bullish tone while above $150. The price action holds the series of higher lows and thus, the pressure against horizontal resistance will continue.
GameStop made headlines in 2021 as it squeezed from the lows in one of the most aggressive bull runs ever. The price reached close to $500 after it traded below $25 at the start of the trading week.
What is even more interesting is that few traders are aware of the fact that the company repurchased 38.1 million shares in 2019, one year before the pandemic. The price was approximately $5/share, as no one saw the potential, if any, in the GameStop stock price.
But this week it announced that it had sold five million shares at around $225/share. It held an “at-the-market” offering and the shares sold rapidly. Without checking, this may be the greatest stock trade in a public company history.
The technical picture in GameStop remains bullish while the higher lows series holds. Bulls may want to stay on the long side with a stop at $150 and a take profit above $350. Aggressive bulls may want to raise the take profit level to $500, on the expectation that the price action forms an ascending triangle.
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