Benzinga
Published Aug 17, 2022 16:51
Updated Aug 17, 2022 17:40
What To Watch On GameStop As The Stock Consolidates Above This Major Level
GameStop Corp . (NYSE: NYSE:GME) has surged over 18% since the stock began trading on a 4-1 split adjusted basis on July 22. On Wednesday at press time, GameStop was trading mostly flat after an early morning surge saw the stock spike up over 5%, where it ran into a group of sellers.
Initially, between July 22 and Aug. 8, GameStop surged 34.13% higher. The recent pull back has been to consolidate the massive increase, which has also helped to cool GameStop’s relative strength index (RSI).
The consolidation has been taking place within a falling channel pattern on the daily chart. The pattern is bearish for the short term but can be bullish down the road.
For bearish traders, the "trend is your friend" (until it's not) and the stock is likely to continue downwards. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
Bullish traders will want to watch for a break up from the upper descending trendline, on high volume, for an entry. When a stock breaks up from a descending channel, it's a powerful reversal signal and indicates a rally is likely in the cards.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The GameStop Chart: The Grapevine, Texas-based company started trading in a falling channel pattern on Aug. 8, making a series of lower high and lower lows within a downtrend. The most recent lower low was formed at the $38.60 level on Tuesday and the most recent confirmed lower high was printed on that same day at $45.53.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga
Read the original article on Benzinga
Written By: Benzinga
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.