The Early Years (2002-2015)
Since its IPO in 2002, GameStop's ($GME) stock has painted an intricate picture through its price action and Target Planes. The initial years showed steady growth as the company expanded its retail presence.
The Descent (2015-2020)
The story's critical phase began in 2015, marking the start of a five-year descent. During this period, the stock activated a macro downside Target Plane, leading to a significant breakdown after sweeping the pre-determined T2 level of a Double Top formation.
The Historic Surge (January 2021)
January 2021 marked a pivotal moment when the stock's price action activated a new Target Plane, emerging from a Descending Broadening Wedge breakout. Fueled by unprecedented retail trading activity and social media attention, the stock swiftly swept through its first target (T1).
Technical Pattern Analysis
Descending Broadening Wedge
- Activated in January 2021
- Multiple T1 retests in March, June, and November 2021
- T2 remains a viable target
Falling Wedge
- Formed during 2022 market crash
- Breakout attempt in May 2023
- T2 target remains open
Recent Developments
The stock experienced significant volatility in 2022-2023, with a macro Falling Wedge pattern emerging during the broader market downturn. Despite the market's recovery to new highs, GME shareholders faced continued pressure as shares declined 92% from their all-time high.
Looking Forward
Both T2 targets from the Descending Broadening Wedge and the Falling Wedge remain viable objectives. The convergence of these technical factors suggests the possibility of significant price action ahead.
Key Points to Watch
- T2 target levels for both major patterns
- Volume patterns at key support/resistance levels
- Market sentiment and retail participation
- Broader market conditions affecting price action
Disclaimer: This analysis is based on technical patterns and historical price action. Trading decisions should involve comprehensive research beyond technical analysis. Past performance does not guarantee future results.