- GameStop stock marks the anniversary of its surge.
- GME traders circulate birthday wishes on social media as CEO Ryan Cohen joins the tweet celebrations.
- GME stock falling but still up over 200% from this time last year.
GameStop (GME) celebrated one year from its hectic heyday this week as the stock initially surged this week last year. GameStop was the original of the meme stock species and spawned many children, most notably AMC. Many have totally retreated but others have held some of their gains over the last year if not being quite at their all-time highs. GME for example is still up 200% from the initial pump, while AMC is up a more impressive 840% from this time last year. Other names have not been so lucky. Virgin Galactic (SPCE) is down 70%, while BlackBerry (BB) is more or less flat from a year ago.
GameStop Stock News
The birthday news is about as exciting as it gets for the stock. That is the problem. Meme stocks need news flow and momentum for them to thrive. This has been steadily drying up. Many have turned to hot sectors like crypto and NFTs to try and maintain momentum, but this is failing. GameStop is trending on social media due to the birthday, but this has not resulted in a follow through for the stock price. Call option volume is decreasing steadily as is normal trading volume across the exchanges in most meme stocks. Momentum is drying up, so we anticipate further losses for the share price of GME and other meme names.
GameStop Stock Forecast
Nothing has changed our view with the double top starting the most recent downtrend and the $118.59 support really the last change. Break this and the move is likely to extend to $70, with some support at $86 along the way. $86 is the retracement from last February.
Breaking the $160 to $167 resistance area will provide an end to the bearish trend, but with a crossed Moving Average Convergence Divergence (MACD) indicator and declining Relative Strength Index (RSI) as well as falling momentum, FXStreet remains bearish.
GameStop (GME) chart, daily
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.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.