A new analysis is projecting a big price surge in GameStop (NYSE:GME) stock.
The Elliott Wave Forecast has recognized an Elliott Wave Nest pattern in GameStop’s current trend.
“Most of the time a nest happens before a huge move takes place,” says BarChart.
In simple terms, the Elliott Wave Nest is essentially a break in structure towards the upside, signaling powerful bullish momentum.
Here’s what this looks like in GameStop:
“The chart above shows the reactions higher from the 1.06.2023, 3.16.2023 and 5.02.2023 lows and the series of higher highs and higher lows taking place.
In a nesting structure, one needs to observe the RSI readings.
The second nest should erase divergence against the first peak and the last nest should come with divergence against the previous peak.
From here, the stock should remain above $18.06 otherwise the nesting structure is invalidated.
Once the wave of 3 starts, we expect the stock to rally towards $55 – $80 before entering into a series of 4s and 5s.”
GameStop shares closed at $26.95 on Tuesday, a jump to $55-$80 per share is quite significant.
This analysis was published on Monday, June 12th by Elliot Wave Forecast and shared by BarChart, who claim did not have any position in the security being mentioned.
GME stock is currently up more than +56% this year-to-date.
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Bullish GameStop News Today
Ryan Cohen purchased GameStop stock worth $10 million, a securities filing showed on Tuesday.
The company lost its fifth CEO in five years just last week.
Nearly 70% of the float is owned by individual shareholders according to Vickers Stock Research.
Ryan Cohen on the other hand now owns more than 12% of GameStop.
“Cohen promised investors a digital pivot, with a focus on e-commerce, but the company has struggled to realize the goal,” says Yahoo Finance.
The company posted a quarterly profit for the first time in two years.
For the quarter ended Jan. 28, net sales dropped slightly to $2.23 billion from $2.25 billion in last year’s fourth quarter.
GameStop also posted a profit of $48.2 million, or 16 cents a share, compared to a loss of $147.5 million, or 49 cents, a year ago.
Former CEO Matt Furlong said on an investor call the company is going into 2023 with further plans to cut excess costs including in European markets, where it has already exited and begun to pull out of some countries.
He said that GameStop is also considering bolstering its business with higher margin categories such as toys.
“GameStop is a much healthier business today than it was at the start of 2021,” he continued.
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