Gamestop (GME) Stock Price and Forecast: GME steadies but channel still trends lower

  • GME shares remain strong but lagging other meme stocks.
  • GameStop shares in a gradually shrinking range, breakout soon?
  • GME stock approaching trendline support at $193.

GameStop shares have stabilized recently in a slight downtrend formation as the stock leaves AMC in the limelight while it ploughs a lone furrow. The original of the meme species has been embarking on its new digital strategy as spearheaded by Ryan Cohen. Since surging to $340 in early June the shares have gradually slid back to near $200. Monday saw GME stock close up just under 2% at $213.25.

Gamestop (GME) statistics

Market Cap $15.3 billion
Enterprise Value $11.4 billion
Price/Earnings (P/E) 2,046 based on next twelve months


Price/Sales 2.6
Gross Margin 24%
Net Margin -2%
EBITDA -$112.2 trailing twelve months
Average Wall Street rating and price target Sell $83.33

GameStop (GME) stock forecast

Gamestop shares have been slowly sliding for most of June having earlier spiked up to over $300. The shares have now been trending below the key 9 and 21-day moving averages and indeed both moving averages are acting as a guide for GME shares. Now some key support levels approach. The small trend channel in place since mid-June has support at $187 and this closely corresponds to the longer-term trend line in place since February. This currently gives support at $193. If those two levels go GME stock enters the large sideways consolidation zone highlighted on the below chart in purple. This area also contains the 100-day moving average at $170.82. 

Zooming out to the weekly chart gives a bit more information. The short term channel has been in palce since early June and the current setup shows an inside indecision candle. Generally an inside candle results in a move in the same direction as the trend, in this case lower. The moving average convergence divergence (MACD) also looks to be corssing into a bearish signal on the weekly timeframe. The strongest support zone based on the volume profile is near the lwoer end of the rectanle consolidation zone, towqards $140. As always use solid risk management when trading any name, particularily a meme stock.




Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD tumbles below 1.17 as Fed sets clear taper timeline

EUR/USD has reversed course, plunging under 1.17 after the Fed signaled tapering of bond buys as soon as November, and the conclusion of the process in mid-2022. The hawkish surprise means a rate hike could come sooner. 


GBP/USD pares gains on Fed's hawkish shift

GBP/USD is trading under 1.3650, falling as the Fed signaled tapering could begin shortly and end in mid-2022. The prospects of US rate hike are boosting the dollar across the board. 


Gold: Fed's hawkish tone marred by risk-on sentiment

Fed leaves interest rates unchanged says moderation in asset purchases "may soon be warranted". Gold volatile on the FOMC statement and rallies into daily resistance. Risk-on tone persists surrounding Evergrande contagion prospects abating. 

Gold News

XRP price bound for another dip before 40% rebound

Ripple price came down 20% since the beginning of this week. With some upside today, bulls stand to face a bull trap that could get quite painful. A better entry point at $0.78 looks to be more promising for bulls.

Read more

Powell Quick Analysis: Three hawkish points propel dollar, NFP critical to cement tapering

Powell surprised by signaling taper announcement could come in November. Tapering may end by mid-2022, opening the door to earlier rate hikes. Powell's comment on employment goal "all but met" is a significant hawkish shift. 

Read more