here we have the current stock market update for GameStop Corporation stock ticker gme before we begin with today's chart analysis if you find these educational materials to be helpful in your trading please remember to click the like And subscribe buttons and leave your thoughts Below in the comment section so that other Traders will be able to find this information more easily on the platform so here we have an hourly price chart each Candlestick on this price chart represents a 1-h hour trading period And as we can see here share prices are attempting to form a bit of a recovery after forming these low uh longer term uh price lows which we're seeing at $19 31 of course this was a fairly significant price movement to the downside a lot of damage was done to this chart in the process and as we can see that price low from the August 28 trading session at 1988 was broken in the process so as we uh assess this uh price trend movement in the video we will be looking at some important price zones uh which can hopefully be used to identify some profitable trading strategies for this stock in the days and weeks ahead so as things currently stand what we're starting to see here is a bit of a you know a bit of a recovery movement higher um we have uh seen share prices fall to these 1931 lows and then then these near-term Highs are are coming into contact uh with some prior resistance zones as well as some moving average resistance and the near-term high comes in right around $20.90 uh so that would be this price movement here that we're watching we can sort of zoom in on this a bit and we can see that these share prices did form these lows uh and then move toward these more recent Highs coming in right around $20.90 so that on its own is a bit of an encouraging sign uh there is some psychological significance to this $20 Market this is possibly the most closely priced level most closely watched price level uh for this stock over its at least it's recent history uh given the roren kitty situation and the the placement of his of his options uh trading strategy trades um so the fact that we have managed to move above that level there is there is some uh some positive uh sentiment that can possibly be garnered uh from those moves higher uh the real question going forward is whether or not uh this this relief rally higher uh is the real thing will will we be able to see some uh some strongly positive momentum that actually generated to the top side so what we do uh to make that type of assessment is we first look at the relative strength index that would be the indicator reading on the bottom of this price chart here and we can see some a few different signals that are occurring at the same time so specifically what we would first point to uh would be this break and upside Trend momentum uh that did occur during these uh price Gap movements lower this would have occurred during the September 10 trading session so this was a very ominous uh development here for this stock because we were starting to see some positive trend momentum uh that has now clearly broken to the downside this is the hourly price chart so this is also the hourly relative strength index reading which means that it's one of the most closely watched uh indicator developments in the market I would say that the daily chart and the hourly chart are the most closely watched so when we start to see movements like this uh we can start we can then assume that a large portion of the market is seeing the same information and is possibly basing trading uh trading stances and strategies on those developments and on those on those indicator signals so this was a negative development here clearly and then we did move into uh oversold territory since then we have started to bounce here and the share price itself is starting to form some higher lows in the process so this is significant because what you actually have here um is a bit of a bullish Divergence condition uh the share prices trading to new lows at 1931 in relation to those prior lows at 1988 uh but as you can see here the indicator reading itself is moving higher not lower so what this does tell you is that the uh the indicative reading is not confirming those recent price lows one thing that that should be mentioned however uh is that this sort of event can happen when uh share price movements Gap to the downside like this if you see tremendous amounts of volatility in a short period of time uh volatility levels that are not you know really in any way indicative of the broader trading Trends I mean we don't really see any other gapping price movements in on this part of the price chart and then as we can see this this price Gap is a substantial price Gap it's a very large price Gap so when you start to see those types of events uh bullish indicator uh divergences uh tend to carry a bit less weight because uh it's not so surprising to see some Distortion in the indicator reading itself so uh we won't just dismiss the fact that this bullish Divergence is here is here it's right I mean we can see it in front of our face here so um you know we're not just going to pretend that it's not there um but it does you do need to take it with a bit of a grain of salt because this did uh this was this was developing after a severe uh round of downside price volatility uh so that can have a distortion effect in the indicator reading itself um overall uh the uh longer term reading uh does remain positive in relation to the shorter term rating uh which is still negative uh so we are some downside price movement there uh as well uh but we can see that the longer term perspective here this longer trend line uh is still in the positive direction so there are a couple of positive signals here that can be pointed to uh you did also break out of oversold territory with the relative strength index the purple line moving above the yellow line which is the uh exponential moving average of the relative strength index so those are all bullish signals we can't just we can't just ignore that so the majority of the evidence in the indicator reading currently uh does point in the in the uh bullish Direction uh however it's not completely bullish and we do have to consider the fact that the uh this recent price volatility to the downside could be distorting things enough to create a possible bullish Divergence condition so if we uh sort of look forward here and just sort of take assessments of what what type of things could occur at this point um you know I would start to normally I would start to expect to see some resistance right around 2166 which was this prior price low uh one reason that that uh that this might not occur um favoring the Bulls here would be the fact that you know again we're coming back to this price Gap here uh which could see uh you know a significant amount of buy and sell orders that are still parked within this uh region this price region so if that is true and we are seeing a lot of uh unfilled orders that have not been tripped yet uh you know this could generate enough uh positive share price momentum to then easily break above that 2166 area the real question about whether whether or not that occurs uh would be the number of outstanding orders that are still in place here this is a very large price Gap um and the stock is closely watched enough um you know that where we could start to see some of those positions be closed um but that is that is really the question at this point I mean will share prices be able to fill this price Gap uh do we still see enough open orders left in the market that would cause that to happen if that does occur that would probably be the most bullish scenario that you could expect at this stage um that would give you a fair amount of upside price movement um you you could be looking at share prices moving back into 2320 if that were were to occur um and that would at least allow the stock to possibly establish a foothold above that critically important psychological level at $20 per share so here's the current stock market update for GameStop Corporation stock ticker gme our high value trading strategies membership is currently available for a limited time for only $9.99 per month these high conviction investment strategies are characterized by Superior risk to reward metrics that Target massive Market beating returns over time join now to outperform the market lock in this special introductory rate of just $9.99 per month for the entire lifetime of your membership and start trading stocks with the pros