fbpx
QQQ
+ 0.00
345.34
+ 0%
DIA
-0.02
338.67
-0.01%
SPY
+ -0.01
421.98
+ 0%
TLT
+ 0.00
143.04
+ 0%
GLD
+ 0.10
165.75
+ 0.06%

GameStop Stock Is Charging Toward Its Apex: A Technical Look

May 13, 2021 2:34 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
GameStop Stock Is Charging Toward Its Apex: A Technical Look

GameStop Corporation (NYSE:GME) has been silent about its epic short squeeze until posting a series of tweets Tuesday and Wednesday that were later deleted.

One tweet, in response to a trailer for the upcoming Mass Effect: Legendary Edition, read “Oops *moass* my bad,” an obvious reference to and acronym for “mother of all short squeeze.”

The short squeeze has been accredited to the WallStreetBets community despite institutions and insiders holding a combined 123.33% of GameStop’s shares, a number that has been declining.

Despite the wild fluctuations in GameStop’s stock, with a 52-week trading range between $3.77 and $483, it has settled into a healthy consolidation pattern with clear support and resistance levels.

The GameStop Chart: GameStop’s stock has been trading in a symmetrical triangle, making lower highs and high lows since March 17. The stock should meet the apex of the triangle by the end of May if it doesn’t choose a bullish or bearish direction sooner.

Volume in the stock has been evaporating over the last few months, and by midday Thursday, only 2.3 million shares of GameStop were traded. Decreasing volume indicates the stock is running out of both buyers and sellers.

Decision time will come when a group of buyers or sellers enter GameStop to break it up or down from its triangle.

GameStop is trading below the eight-day exponential moving average and just below the 21-day EMA.

On Friday, the stock tried to regain the 21-day EMA but rejected and wicked off it. The 21-day EMA also coincides with a resistance level at $161.60.

The eight-day EMA is trending slightly below the 21-day EMA, which gives a bearish lean. Bullish volume would help GameStop to reclaim the 21-day EMA, and if it can trade over top of it, the eight-day EMA will eventually cross above the 21-day EMA.

GameStop is also trading above the 200-day SMA, which indicates that overall sentiment in the stock remains bullish.

gme_may_13.png

Bulls want to see large bullish volume break GameStop’s stock up out of the triangle. If it can make a bullish break, it has room to trade back toward the $217 level.

Bears want to see GameStop break down bearish from the triangle on large bullish volume that could see the stock fall toward the $118 level. If GameStop was unable to hold that level of support, it could trade back down to $91.71.

GME Price Action: Shares of GameStop were trading up 11.87% at $161.97 at last check. 

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Is Arrival Becoming A Short Squeeze Target? WallStreetBets Post Sends Shares Soaring

Arrival SA (NASDAQ: ARVL) shares are up over 11% in Wednesday's pre-market regular session after closing nearly 6% higher in the regular session a day prior. The surge comes in the aftermath of a  read more

Mark Cuban Says Dogecoin, GameStop, AMC Can Be 'Good Investments,' But First Ask Yourself 'Why You're Investing'

Dallas Mavericks owner Mark Cuban has advised investors who plan to invest in meme cryptocurrency Dogecoin (DOGE) or so-called stonks such as GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc. read more

Petco Joins Top WallStreetBets Interests Alongside Clean Energy Fuels, Corsair Gaming, AMC As Stock Surges

Petco Health and Wellness Company Inc. (NASDAQ: WOOF) has joined Clean Energy Fuels Corp. (NASDAQ: CLNE), Corsair Gaming Inc. (NASDAQ: read more

What Happened With AMC, GameStop, Koss, Nokia And Palantir Today?

AMC Entertainment Holdings Inc (NYSE: AMC) shares soared higher Wednesday by 95.6% to $62.55 amid renewed interest from retail investors. read more