At the beginning of the week, GameStop's stock showed an increase in value as investors awaited the release of the company's earnings report after the closing bell on Tuesday. The stock broke out of a falling wedge pattern on strong volume during Friday's trading session, signaling a possible rally following the earnings announcement.

Investors are advised to monitor critical resistance levels at approximately $29, $32, and $37 on GameStop's chart, in addition to keeping an eye on key support levels near $22 and $20.

Analysts are predicting that GameStop will report fourth-quarter earnings of 9 cents per share on revenue of $1.48 billion. Market attention is likely to focus on updates regarding the company's investment strategy, particularly in relation to digital assets such as bitcoin. Reports have indicated that GameStop may consider investing its significant cash reserve, estimated at around $5 billion, in bitcoin following proposals from firms like Strive Asset Management.

Last month, GameStop's CEO Ryan Cohen revealed discussions about potential investments in alternative assets, including cryptocurrencies, as evidenced by a meeting with Michael Saylor, the co-founder of MicroStrategy. The stock, a popular choice among retail traders and meme stock enthusiasts, saw a 3.5% increase to $25.61 on Monday, following a 7% gain the previous week.

Despite this positive momentum, GameStop shares remain 18% lower since the beginning of the year. Technical analysis of the stock's chart indicates a breakthrough from a falling wedge pattern, potentially leading to a surge in the stock price fueled by earnings optimism. However, the convergence of the 50-day moving average towards the 200-day moving average could indicate a bearish trend.

By closely observing the stock's performance and tracking key levels, investors can better position themselves amidst potential price fluctuations driven by the upcoming earnings report.