It may be time to sell GameStop Corp. GME, Mind Medicine (MindMed) Inc. MNMD, and Archer-Daniels-Midland Company ADM and the reasons why will be outlined below.
On Jan 28, Reddit favorite GameStop reached $483 a share. Now it’s trading around $175. There’s a good chance that it goes even lower.
The amount of average daily volume of the shares has declined significantly since then. This is usually a bearish signal.
Resistance is a large concentration of sellers who are all trying to get the same price. There has been resistance for MindMed at the $4.30 level.
Stocks frequently trade lower after they run into resistance levels. It happened with MNMD in December and February and it appears to be happening once more.
See Also: MindMed's Nasdaq Listing Enables Institutions Diversified Access To A New Age Of Medicine
Archer-Daniels-Midland is overbought. The red line on the chart is two standard deviations above the 20-day average price. ADM has exceeded this threshold, which oftentimes means the short sellers will hit it. They will be expecting a reversion to the average, which could drive the price lower.
See also: Best Penny Stocks Under $1
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