3 Reddit Stocks That Could Face Trouble Ahead: A Technical Analysis
GameStop Corp. (NYSE:GME) stock may not be revisiting its recent highs anytime soon.
Resistance has formed at the $200 level for GameStop. This could put a top on the stock, at least in the short-term.
Resistance is a large concentration of sellers who have gathered at the same price level. Rallies end when they reach resistance levels.
The GameStop chart shows the $200 level has been resistance in recent weeks.
AMC Entertainment Holdings Inc (NYSE:AMC) has offered buyers another opportunity.
There is support for AMC around the $9 level. The stock is currently testing this level.
Support is the opposite of resistance. It is a concentration of buyers gathered around the same level. Selloffs tend to end when they reach support levels.
The chart shows that in late March, AMC rallied when it fell to the $9 level; this could occur again.
Sundial Growers Inc (NASDAQ: SNDL) may continue to trend lower.
The stock has broken support around the $1.10 level. This is where shares found a bottom in early March. A rebound followed.
When a support level breaks, it is a graphical illustration that the large group of buyers who formed the support are gone. They finished their orders.
With this large amount of demand out of the market, the sellers will have no choice but to sell at lower prices. This has forced the shares into a downtrend.
See also: What are Reddit Stocks?
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.