GME Stock Price Drops By 4.3%; Is an Upside Trend Coming to an End?

Gamestop is an American Retail company that specializes in video Games and Electronics. It is one of the largest video game retailers which has stores in various countries. Gamestop stock gained popularity in 2021 due to a short squeeze which pushed the asset price to a new high. GME stock saw unprecedented gains but then fell to its previous levels. GameStop stock recently posted a profit after 2 long years in Q4 2022. The company has slashed its inventory levels and is planning to cut more costs this year. For the 4th quarter which ended on Jan 28, Gamestop stock has observed a slight decline in sales. Meanwhile, the video game reported a profit of $48.2 Million in the previous quarter. GME stock has been moving toward profitability and can move to a new high in the near future.

Gamestop has a market cap of $6.72 Billion with a positive EPS in the previous quarter. GME stock price is currently down by more than 50% from its 52-week high. The asset price can see a strong rise in the near future.

GME Stock Price Struggles To Take Off

GameStop’s stock price has been moving in a weak upside momentum on the weekly technical chart. GME stock price is currently trading near the value of $22 with a drop of 4% in the intraday session. The stock price has been seeing an upside momentum since May 2 but has now come to a halt. The upside trend of GME can see a halt near the value of $25.Meanwhile, the downside trend of asset price can see a halt near the value of $20. GME stock price is currently trading above the 50 and 100 Daily Moving Averages. The 50 and 100 DMA lines can act as support for GME stock price in case of a downside trend.

MACD of GME stock price is hinting toward a weak upside momentum in price. The bars and signal lines of the indicator also hint toward a bullish move.

Summary

Gamestop reported profitability after a long time in Q4 2022. GME stock price is currently observing a halt but can soon observe a strong upside momentum in the future.

Technical Levels

Major Support:$20

Major Resistance:$25

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