GameStop Cracks Below A Key Trendline: What's Next For The Stock?

GameStop Corp. GME shares are trading lower Thursday after the company reported third-quarter EPS results were lower year over year.

The company reported quarterly losses of $1.39 per share and quarterly sales of $1.30 billion. This sales figure beat the analyst consensus estimate of $1.19 billion by 9%.

Gamestop was down 6.5% at $162.36 at time of publication.

See Also: Why Gamestop Shares Are Falling

Gamestop Daily Chart Analysis

• Shares look to have fallen below a higher low trendline in what traders call an ascending triangle pattern. The pattern was showing resistance near the $230 level and support near this trendline before the break.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bullish sentiment, and each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) has been falling lower the past few weeks and sits at 36 on the indicator. This shows that selling pressure is outweighing buying pressure by a significant margin.

What’s Next For Gamestop?

As Gamestop has fallen below the higher low trendline, it gives a more bearish outlook on the stock. Those wanting the stock to look bullish again may need to see a cross back above the higher low trendline and continue pushing toward resistance. Bearish traders like the cross below the higher low trendline and want to see the stock stay below the moving averages.

Photo: BentleyMall on Wikipedia.