However, it’s up 17% from this morning’s open and at the session high, shares were up almost 20%.
Ahead of the print, investors wanted to know if the company could execute on its turnaround plan and if NFTs could help lead the way.
Near the open, there seemed to be some doubts, but those were quickly eased as the stock erased its early 9% loss and quickly turned positive on the day.
GameStop, AMC Entertainment (AMC) – Get AMC Entertainment Holdings, Inc. Class A Report and a few others are the prior short-squeeze stocks that led the way higher for the so-called Reddit stocks in early 2021. Now these stocks have been obliterated.
There are many great retail stocks to choose from amid the recent pullback. With a $7 billion market cap, is GameStop one of them? Let’s look at the chart.
Trading GameStop Stock
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Notice how prior support zones have shifted to resistance zones for GameStop stock.
We saw it first with the $159 level, which was support in early December, then resistance going forward. And while $130 was acting as support during that time, it eventually became resistance in February once it failed to buoy the stock.
With today’s rally, GameStop stock is clearing the January low near $86, as well as the last four days worth of highs. However, it’s struggling to reclaim the 10-day moving average.
In this case, the 10-day is the first measure of resistance. So for GameStop to be struggling with it now is a bit concerning.
If it can clear this measure and today’s high, we could see a larger move higher and in a rather orderly manner at that.
In that scenario, $100 would be in play next, followed by the 21-day and the big $110 to $112 zone. The latter area comes into play just beyond the 21-day, but contains the 50-day and daily VWAP measure, as well as the 61.8% retracement.
I would expect this area to act as initial resistance. Otherwise a breakout over this zone would open up the $125 to $130 area as the next possible target. Given it’s current struggle with the 10-day though, one can see why I’m hesitant to aim this high.
On the downside, from here keep an eye on $86. Below that mark puts the $77.50 to $80 area back in play. Below that and we could see $67 and possibly even $50 if the selling keeps up.