- GameStop shares do not have a happy birthday as the shares continue to lose ground.
- GME stock closes another 5% lower on Friday.
- $100 is the next target for GME shares before $86.
GameStop (GME) stock celebrated the one-year anniversary of the mega meme explosion last week, but unfortunately history is not so far repeating itself in this case. GameStop shares continue to lose ground and look perilously close to breaking $100. Investors will note, well those that got in early, that the stock is still up 228% from one year ago.
GameStop Stock News
There is little news here, and that is the problem. Meme stocks need momentum and attention. It is their oxygen. Without it, they die.
This is exactly what has been happening across the meme stock space so far in 2022. Even the brief championing of the one-year anniversary on social media and particularly Twitter failed to see any meaningful follow-through to GameStop's share price. The CEO did tweet about the anniversary, and this was picked up on by GME traders in the retail space, but follow-through was non-existent. GameStop was among the top trending names on Stocktwits, Twitter and WallStreetBets last week but still the share price fell. This is worrying in terms of momentum.
GameStop Stock Forecast
The real problem was the bearish double top identified in November and December. We did identify this pretty early at FXStreet and sent out the warning shots to our loyal readers. We are far from perfect, but a double top is not to be taken lightly. In this case, it has followed through on its bearish promise.
$167 was a big level to break and moved GME stock out of its long-term range. Friday has seen another significant level tested, the low from March 2021 at $118.59. GameStop closed below this level on Friday and is poised to break $100 on its way to $86. We have a declining Relative Strength Index (RSI) and a broken Moving Average Convergence Divergence (MACD) indicator. To reverse the trend, GME would need to break above $161.
GameStop (GME) chart, daily
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