GameStop Stock price (NYSE: GME) witnessed a short squeeze on 22 March 2023 after GME posted a profitable quarterly earnings. GME stock price surged 35% in a single day and hit a high of $27.00 in a regular trading session. However, the prices have seen profit booking from the higher levels and spent the session in range between $27.00 to $23.00.
GME stock price attempted to break out of the 200 day EMA to turn the positional trend in the upward direction but the confirmation is still awaited. At the beginning of January, GameStop stock price took a U-turn from its 52 week low and started rising upward by forming higher high candles.
Later, GME share price had managed to regain the 50-day EMA and showed signs of a bullish trend reversal. However, the rally halted at $25.00 and prices began to lose momentum at the higher levels. At the beginning of February, GME stock failed to give the follow up momentum and the price trend started reversing in a downward direction. Therefore, $25.00 marked a strong hurdle level for the bulls.
Will GME Stock Price be Able to Hold Higher Levels?
GameStop stock price (NYSE: GME) tried to hold the $20.00 level but due to sell off in the Global market GME stock price also got negatively impacted. Meanwhile, it also slipped below the 50 day EMA which invited further decline and bears drag the prices toward the yearly lows. Recently, GME share price retested the 52 week low and formed a bullish reversal candle. Moreover, the recent up-move is due to the positive quarterly earnings. If market sentiment remains bullish, then GME stock price might hold the current levels.
GME stock price witnessed a huge spike in the volume which indicates that short sellers have closed their positions and bears are lacking dominance in the supply zone. Technical analysis suggests the probability of sustaining the recent gains is high because the company showed improvement in financial performance. However, Gamestop share price might attempt to fill the gap or consolidate in a narrow range of $20.00 to $28.00.
GameStop Corp: Earnings Update
GameStop Corp (NYSE: GME ) reported January 2023 quarterly results on March 21st, 2023 which surprised investors. GameStop Corp reported an EPS of $0.16 while the estimate was -$0.133 which is 220% higher. It reported a revenue of $2.23 billion vs estimated at $2.18 billion which is 2.12% higher.
Conclusion
Gamestop stock (NYSE: GME) price reacted positively to the quarterly earnings report and prices attempted to break the 200-day EMA. However, the up-move was created by short sellers who exited their previous short positions. Therefore, GME stock price has to consolidate to show strength at the higher levels.
Technical levels
Resistance levels : $28.00 and $35.00
Support levels : $20.00 and $15.66
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/23/gamestop-corp-beat-eps-by-220-gme-stock-price-surged-35/