- GameStop shares fall further on Monday as the meme massacre continues.
- GME stock is down 12% in 2022.
- Growth, tech and memes suffer as rates rise and investors rotate.
Investor rotation is on, and this week is likely to see that trend continue with financial stocks reporting on Friday. Also up this week is inflation data, which is likely to show a continued heating up and the total lack of transitory inflation. Goldman Sachs has already added a fourth rate hike to its predictions for 2022, and fed funds futures are now looking at the nailed-on certainty of a March hike. All this has not helped the so-called high growth space. Tech fits neatly into this category, while meme is a category all of its own.
GameStop (GME) stock news
The Wall Street Journal reported last week that GameStop was hiring people for a cryptocurrency and NFT division. These are the meme stock spin-offs that have seen huge growth and appreciation in 2021, so it makes sense to attract some of that momentum back into the stock. Is this a clever strategy or a bit of attention-grabbing? Well, the results will speak for themselves, but the stock does need a catalyst. The holiday sales period will be key, but results are not due for a few months, so another catalyst is needed.
GameStop (GME) stock forecast
The spike last week from the above-mentioned pivot into crypto and NFTs failed to dent the channel. GME stock failed to make a new high and instead set a new low on Monday. This then looks like a classic downtrend.
Breaking $160 and closing above is the key pivot for restarting a bullish move. So long as GME trades below $160, then it is likely to target new lows below $118. There is a really big gap below. Obviously, $100 will prove psychological support, but volume is light until $60. We have a declining Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) confirming the price trend. $160 is the short-term pivot with $167 the preferred resistance to hold above. That will see a test of the 200-day moving average at $185.
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.