In financial markets price levels that were previously support can convert into resistance. That’s why the GameStop Corp. rebound may have halted.
This conversion happens because of buyer’s remorse.
In August, the $150 level was support for GameStop. There was a large number of buyers and they put a floor under the price and a rally followed.
Now the price is lower.
Many of these investors experience buyer’s remorse and decide to sell, but they’re reluctant to take a loss so they place their sell orders at the same price they bought their stock at.
If there are enough of these sell orders at or close to the $150 level, it will cause resistance to form. That may have happened here.
Benzinga
By Mark Putrino
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