- GameStop stock finished lower on Wednesday by 1%.
- GME stock has now formed a bearish double top.
- GME, if it sticks to the target, would see $150 soon.
GameStop (GME) fans and traders may not like the sound of this, but it appears the stock has confirmed the double top we alluded to earlier in the week with yesterday's fall. While markets are closed today Thursday and are likely to see light volume in a reduced session on Friday, this remains a bearish picture.
GameStop (GME) chart, 15-minute
GameStop (GME) stock news
A bizarre twist has developed in the David vs Goliath saga of the GameStop short squeeze seen earlier this year. According to a Benzinga report, a group of individuals called ConstitutionDAO pooled together via crowdfunding to attempt to buy a copy of the US Constitution. However, the Benzinga report states that the group lost out to Ken Griffin. It is not major news for the underlying stock but remains an interesting sidebar.
The stock itself has little in the way of fundamental news flow. That is part of the problem. Momentum stocks need momentum, and when it stops so does the share price. That is what is happening across multiple names such as AMC, Rivian LCID, and others. The next event of note will likely be earnings from GameStop on Wednesday, December 8.
GameStop (GME) stock forecast
,Gamestop (GME) shares have been fairly rangebound between $220 and $240 and have moved through this range over the last week. There is a lot of volume at $210, indicating a support of sorts.
The daily chart though is where the bearish double top is on show. The target of a double top or bottom is the retracement amount between both peaks or the valley. In the case of GME that is $50, so a break of the valley floor at $200 gives a target of $150. Only by breaking $250 in the next few sessions can this double top be discounted.
GME 1-day chart
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.