Are things getting uglier on GameStop’s stock chart? – Gamestop Corp. (GME)

GameStop Corp. (NYSE:GME) Shares are trading down 5% in the $150.09 area at press time.

GameStop Daily Chart Analysis

  • Stocks appear to have broken the bearish side of a pennant pattern. Stocks fell below pattern support and continued to decline.
  • The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating that the stock is likely facing a period of consolidation.
  • The 50-day moving average can act as a resistance zone, while the 200-day moving average can act as a support area.
  • After the price was condensed for a while in the pattern, the price broke below the support of the pattern. This is a hopeful sign for the bears, who would like to see the stock continue to decline.
  • The Relative Strength Index (RSI) has fallen recently and is now at the 30 level. This is just on the border for the stock to become oversold. Currently, there are many more sellers than buyers in the stock.

From last week: GameStop Stock needs a bounce or things could get ugly

What’s next for Gamestop?

The bulls would like to see the stock rebound and start rising. They want to see the stock move back up into the pennant pattern and resume trading within the pattern. Bulls then want to see the stock break out of the pattern and move up.

The bears would like to see the stock continue lower and be unable to find support. They also want to see the stock move below the 200-day moving average for a potential shift in sentiment and trend.

See also: How‌ ‌Do‌ ‌Buy‌ ‌GameStop‌ ‌(GME)‌ ‌Stock‌

Karen J. Nelson