2 Meme Stocks Hanging Near Support, Looking To Bounce

Gamestop Corp. GME and Chewy Inc. CHWY are nearing potential support lines and may be worth checking out.

Here's a technical look at the stock charts. 

GameStop Daily Chart Analysis: The daily chart above shows GameStop is nearing the bottom of a channel.

The stock has previously been able to find support near the $130 level. This is an area the stock has struggled to cross below and it may hold again as support.

The stock has shown some resistance near the $300 level. This has been a place the stock has been unable to cross above and hold in the past; this area may find resistance again. 

The stock is trading above the 200-day moving average (blue), indicating sentiment in the stock has been bullish as of late. This indicator may hold as an area of support. 

What’s Next? Bullish technical traders would like to see the stock bounce at the support level for a potential move back up. They would then like to see the stock build higher lows up to the resistance level.

A break above the $300 resistance level with some consolidation may let the stock see a further move up.

Bearish traders would like to see the stock fail to hold the $130 level as support. A cross below the support level with consolidation could lead to a further downward move. 

Chewy Daily Chart Analysis: The daily chart above shows a strong uptrend throughout the year in Chewy shares. 

The stock has formed higher lows throughout the year. The stock also looked to have found support near a previous area of resistance near $75.

The stock is trading above the 200-day moving average (blue), indicating sentiment in the stock has been bullish. This indicator may hold as an area of support in the future.

What’s Next? Bullish traders would like to see the stock continue to form higher lows. Bearish traders would like to see the stock stop forming higher lows.