GameStop Corp. shares are trading lower Monday alongside other meme stocks. The stock is continuing to slide lower after the company’s quarterly earnings report last Wednesday showed a 30 percent revenue boost, but a large widening loss-per-share.
GameStop Daily Chart Analysis
Shares look to have recently crossed below the higher low trendline in what traders would call an ascending triangle pattern. The cross below the support level is showing that GameStop has been unable to continue the uptrend it has been on.The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
The Relative Strength Index (RSI) has been in a steady downfall since the middle of November and now sits at 30. This is on the border of the oversold region and shows the stock is seeing much more selling pressure than it is buying pressure.
What’s Next for GameStop?
GameStop bulls are looking to see the stock make a rebound and climb back into the triangle pattern. Bulls would then like to see the stock break above the $230 resistance.Bears look to be in control of the stock and are happy to see it fall below the higher low trendline and the moving averages. As long as the stock can sit below the trendline and moving averages, bears will stay in control of the stock.
