- GameStop stock crashes but recovers in the afternoon.
- GameStop shares close nearly 6% lower on Monday.
- GME shares remain top of WallStreetBets interest list.
GameStop (GME) stock likes volatility, and meme traders should certainly be used to it by now, but perhaps not the type that was evident yesterday. GameStop shares crashed below $100 and kept on going before a broad-based afternoon rally helped GME stock recover to close just above the psychological $100 level.
GameStop Stock News
Again we find ourselves writing about a stock with significant movement based solely on price action. There is little in the way of actual hard news flow. GameStop stock has not had a good start to the year, but despite this it remains one of the top trending stocks across most social media platforms. This has partly to do with loyalty and partly to do with the one-year anniversary of the GameStop saga. However, for the most part traders are fixated on the big picture theme of us versus them that captured the whole argument. GameStop is now down over 30% so far in 2022.
GameStop Stock Forecast
We remain bearish on this one, which I know many loyal holders may not want to hear. We have to focus on the chart and what we can take from that. Loyalty, if not profitable, is pointless to a trader. Emotion should always be controlled.
Breaking $100 was psychological and led to some stops likely triggering. We had identified $86 as strong support for the last few weeks, and GME shares more or less bounced perfectly from it yesterday. GME stock bottomed out at $86.29, so we can take some kudos for that. But now where?
Holding $86 was actually pretty important as below is a big volume gap that would likely see an acceleration toward $70. Holding gives some hope of a rebound, but $118.59 remains the short-term pivot for us. Below here bears are in charge. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both still following price lower, so there is no sign of any divergence or oversold conditions just yet.
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.