The Yellow Level of 21.37 acts as a key inflection point for GME since 2022.In May 2024, GME’s stock experienced significant volatility (The Hiccup), closing the month at $23,14 – close to the Yellow Level. Similarly:
June 2024 closing price: 24,69;
July 2024 closing price: 22,67;
August 2024 closing price: 23,42;
September 2024: this is where things get interesting. On September 11th, the price was hammered below the critical support level of 21,37 – and spent 7 trading days below that level, then immediately reclaimed it on September 20th. This level was lost on 7th of October, an attempt to breakout was made in between 14th and 18th of October, and the price got hammered again. Another breakout was attempted on 25th of October and confirmed on 4th of November. It’s been over that level until 27th of March, when a short ladder attack happened. The level held firm, briefly falling under 21,37.
The Yellow Level is crucial for GME:
1) The stock has tested The Yellow Level previously, making it a potential demand zone where buyers might step in. If it holds, a reversal upwards could be on the table.
2) If GME bounces off 21,37, it could trigger bullish momentum, pushing it toward 34,20 and higher;
3) If GME breaks below 21,37 and confirms it as resistance, it could go as low as 18,66
4) Trading volume always spikes around this level, it confirms that market participants view it as meaningful support. Check volume on March 27th.
The Yellow Level isn’t just a number—it’s been a decision point since at least 2022. How GME reacts here will determine the next wave of momentum, so watching for price action and volume is crucial now.