Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
GameStop Corp. GME stock price fell 8.32% in the current month and hit a 52-week low at $14.44. It faced rejection from $20.00 and began to decline by forming lower-low candles.
GameStop stock price broke down the crucial swing low support of $16.00 which raised concern for its long-term investors. However, the stock price is taking support near $15.00 and buyers are trying to give a short-term pullback.
GME stock price is in a downtrend but the current price has gone far away from the EMAs. So, a minor pullback rally to the 50-day EMA may come. The price pattern of GameStop Corp. looks bearish. So, any short-term pull toward the EMAs might face difficulty in holding the higher levels.
However, in the last two months, the stock continuously declined and eroded all its previous gains. Hence, consolidation in a narrow range is needed for base formation.
At present, the price action does not show any signs of upward reversal. So, the investors need to be careful before building any positions. GameStop stock price closed the previous session at $15.09 with an intraday decline of -4.61%.
Will GameStop Corp. GME Stock Price Repeat History?
GameStop Corp. GME stock price is in the bears’ grip and sellers are continuing their dominance. In 2023, the stock took support multiple times near $15.00 and reversed upward.
At present, the price is near its long-term demand zone so the historical price patterns may repeat again. However, the confirmation of the trend reversal will come when buyers are able to break out of the $20 hurdle.
The technical analysis suggests the downfall in GME stock price has halted and a pullback rally is pending.
GameStop Stock Price Formed Inverted Hammer Candle
GameStop stock price fell for four consecutive weeks and formed a bearish pattern. In the current week, the stock displays an inverted hammer candle. It shows that sellers are active and it will be not easy for bulls to reverse the trend.
The MACD curve is below the zero line but the curve is sloping sideways. It indicates that the price might spend some time in consolidation before deciding the next direction.
The RSI at 37 slopes down and denotes oversold territory. So, it will be risky for short sellers to create further shorts.
Conclusion
GameStop Corp. GME stock price is in a correction phase and sellers are continuing their dominance. However, at present, the GameStop stock price is near the long-term demand zone. So, investors expect the historical patterns may be repeated.
Technical Levels
- Resistance levels: $19.51 and $23.64
- Support levels: $14.46 and $14.00
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.
Source: https://www.thecoinrepublic.com/2023/10/13/gamestop-stock-price-analysis-will-gme-stock-price-defend-15/