GameStop stock price prediction (NYSE: GME) is bullish till buyers hold the price above the $18.00. However, if the GME stock price drops below $20.00, then it may raise concerns for the long term investors.
GME stock is struggling to keep the price above the 50 day and 200 day EMAs showcasing that the short term trend is down. The sellers are active and continuing their dominance on the higher levels.
GameStop Corp stock price performed well in the past few months and created a positive hope for the long term investors.
In the beginning of June, GameStop Corp released the previous quarter earnings. The Company met the target EPS but the revenue was disappointing due to which stock price opened with a massive gap down.
Luckily buyers got triggered from $20.00 support and prices bounced back with a strong momentum. At the same time buying volume also increased and prices rallied 36% in 4 trading sessions.
However, the rally was speculative and buyers failed to give follow up momentum. GameStop stock price closed the previous sessions at $21.93 with an intraday decline of -1.31%. The market capitalization stands at $6.68 Billion.
Will GameStop Stock Erode the Previous Gains?
GameStop price (NYSE: GME) faced rejection from $27.00 and slow and steady prices eroded the 50% of its gains. Presently, Gamestop Corp stock is consolidating in the narrow range between $22.00 to $26.00.
In the previous session, sellers tried to drag the price below the lower range but the confirmation of the breakdown is still awaited. If the sellers succeed, then the the $20.00 support will be at risk.
On the other hand, If GME tock bounces back, then the short term trend will reverse in the favor of bulls.
GME Stock Price Near Crucial Support
GME stock price formed a long tail bearish rejection candle on the weekly time frame. However, the price is re near to the crucial support and it will be interesting to see the reaction at the lower levels.
The MACD generated a negative crossover and the curve dropped below the zero line. It indicates that bears are getting active and the possibility of a breakdown is high. The RSI at 40 slopes downward denoting weakness and might test the oversold territory in coming weeks.
Conclusion
GameStop price (NYSE: GME) is mildly bearish and sellers are trying their best to pull the price below the $22.00. The technical analysis suggests bears are active in GME stock and probability of $20.00 breakdown remains high.
Technical levels
- Resistance levels: $26.00 and $27.61
- Support levels: $20.00 and $18.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/07/29/gamestop-stock-nyse-gme-will-gme-stock-drop-below-20-again/