GameStop Stock News and Forecast: Is GME a dead cat bounce or the start of next rally?
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UNLOCK OFFER- GameStop stock rallies on Thursday and Friday, closes the week at $98.39.
- Sentiment has been extremely negative, so is it time for a sharp turnaround?
- GME still down sharply for the year, 34%.
GameStop (GME) stock managed to build on some promising signs on Thursday with a strong rally on Friday. GME stock closed up just under 10% and just short of the $100 level at $98.39. Other retail and meme-type stocks also performed strongly as the equity market finally saw risk return in a limited fashion after taking a serious knock earlier in the week. However, things remain fragile and the narrative is constantly changing. So investors had better remain on guard for some more volatility. At this time risk management is even more important.
GameStop Stock News
GME had signaled its intent early on Thursday when it spiked sharply. It gave up most of those gains but closed the day 10% higher. This was slightly concerning for bulls, but Friday was a more risk-on day as all equities were on the front foot from the open. By the end of friday, over 90% of all stock closed positively, a strong market breadth indicator. GameStop again rallied sharply before closing well down from its intraday high. That speaks to a lack of conviction in the trend, perhaps demonstrating the retail army has shrunk following some pretty steep losses. This is demonstrated by the following chart.
GameStop Stock Forecast
So far so perfect from our technical perspective. GME bounced off support at $78 and spiked up to the 9-day moving average. This rally was signaled by both the Relative Strength Index (RSI) and Money Flow Index (MFI) moving into oversold territory. Next up is the $120-$127 zone, which is a high volume resistance area. GME could get through here, but it is really up to the broader market now. The market is in charge, and the days of risk assets outperforming are at an end. A broad market rally is a possibility at least for this week though. Limited earnings data and economic data could help stabilize the market after recent losses. Monday's action at the previous week's high of $108 are key. Get above there and GME looks more bullish short term, but remaining below means the risk is to the downside.
GME stock chart, daily
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- GameStop stock rallies on Thursday and Friday, closes the week at $98.39.
- Sentiment has been extremely negative, so is it time for a sharp turnaround?
- GME still down sharply for the year, 34%.
GameStop (GME) stock managed to build on some promising signs on Thursday with a strong rally on Friday. GME stock closed up just under 10% and just short of the $100 level at $98.39. Other retail and meme-type stocks also performed strongly as the equity market finally saw risk return in a limited fashion after taking a serious knock earlier in the week. However, things remain fragile and the narrative is constantly changing. So investors had better remain on guard for some more volatility. At this time risk management is even more important.
GameStop Stock News
GME had signaled its intent early on Thursday when it spiked sharply. It gave up most of those gains but closed the day 10% higher. This was slightly concerning for bulls, but Friday was a more risk-on day as all equities were on the front foot from the open. By the end of friday, over 90% of all stock closed positively, a strong market breadth indicator. GameStop again rallied sharply before closing well down from its intraday high. That speaks to a lack of conviction in the trend, perhaps demonstrating the retail army has shrunk following some pretty steep losses. This is demonstrated by the following chart.
GameStop Stock Forecast
So far so perfect from our technical perspective. GME bounced off support at $78 and spiked up to the 9-day moving average. This rally was signaled by both the Relative Strength Index (RSI) and Money Flow Index (MFI) moving into oversold territory. Next up is the $120-$127 zone, which is a high volume resistance area. GME could get through here, but it is really up to the broader market now. The market is in charge, and the days of risk assets outperforming are at an end. A broad market rally is a possibility at least for this week though. Limited earnings data and economic data could help stabilize the market after recent losses. Monday's action at the previous week's high of $108 are key. Get above there and GME looks more bullish short term, but remaining below means the risk is to the downside.
GME stock chart, daily
Like this article? Help us with some feedback by answering this survey:
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