- NYSE:GME fell by 2.87% during Tuesday’s trading session.
- GameStop’s stock could be looking towards the earnings for a breakout.
- Meme stocks were swept up in the market sell-off on Tuesday.
NYSE:GME extended its decline on Tuesday as the broader markets continued to exhibit volatility amidst rising fears of the Omicron variant spreading. Shares of GameStop fell by 2.87% on Tuesday and closed the trading day at $196.21. The stock failed to hold the $200.00 price level and is now on the cusp of losing its key short-term 50-day simple moving average price. Global markets tumbled once again on Tuesday, giving back all of the gains from Monday’s session. The Dow Jones slipped by 652 basis points, while the S&P 500 and NASDAQ dropped by 1.90% and 1.55% respectively.
GameStop has been trading within range over the past couple of months and seems to be forming an ascending triangle on its chart. While the stock has been on the decline as of late, it has found a trendline as support that is creating a wedge formation that could end in the stock breaking out in either direction. With the third-quarter earnings call fast approaching on December 8th, this could be the catalyst the stock needs to break out, or potential break lower if the report is bearish.
GME stock news
GameStop wasn’t the only meme stock to be caught up in the market sell-off on Tuesday. Other popular meme stocks like AMC (NYSE:AMC), ContextLogic (NASDAQ:WISH), Camber Energy Inc. (NYSEAMERICAN:CEI), and SmileDirectClub (NASDAQ:SDC) all fell as well. Other stocks that have been mentioned on r/WallStreetBets on Tuesday include Palantir (NYSE:PLTR) and Lucid Group (NASDAQ:LCID) which also experienced red days during the market tumble.
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