GameStop Stock Price and Forecast: GME double top could see $150 targeted

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.

Ivan Brian FXStreet

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

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

AUD/USD remains below 0.7000 amid light trading

AUD/USD fills a modest bearish gap on Monday, but remains below 0.7000 in the Asian session amid holiday-thinned liquidity. The US Dollar attempts a bounce even as US bond yields pull back from multi-year highs, limiting the pair. Moreover, diminishing odds of another RBA rate hike in November cap the Aussie.

USD/JPY hovers above 158.00 amid Japan/ US holiday

USD/JPY extends its range-bound price action into a new week, trading above 158.00 as bulls remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, softer US bond yields keep US Dollar bulls on the back foot and cap the pair's upside. However, geopolitical uncertainties could limit losses for the safe-haven buck amid thin liquidity due to a holiday in Japan and the US.

Gold remains vulnerable below $4,200 on Fed hike bets

Gold is under mild selling pressure on Monday, trading at around $4,170. The US Dollar advances modestly in thin trading, supported by bets that the Federal Reserve will hike rates at least one more time before year-end.

Bitcoin struggles as ETF outflows, geopolitical uncertainty weigh

Bitcoin hovers around $83,600 on Monday after a 3.1% correction last week. US-listed spot ETFs recorded an outflow of $681.10 million last week, snapping the three-week inflow streak. Geopolitical uncertainty and mixed signals keep investors cautious.

The week ahead: A critical week as earnings and CPI test market

The Oil price is relatively stable this morning, and US and European stock markets are poised to open higher, as risk sentiment shrugs off an escalation in the Middle East and concerns about rising bond yields.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?