GameStop Corp (NYSE:GME) is back in focus as it gears up to report second-quarter earnings after the market close on Tuesday.
Wall Street is expecting the company to report an EPS of 16 cents on revenue of $823.25 million, but for many traders, the real action is on the chart, where GME looks primed for another bout of meme-fueled volatility.
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Charts Show Tight Range Before Earnings
GameStop is trading around $22.61, hovering just below key moving averages: the eight-day SMA (simple moving average) at $22.70, the 20-day at $22.74 and t50-day at $23.02. The 200-day SMA looms higher at $26.07, representing a major resistance level.
With MACD (moving average convergence/divergence) at a negative 0.14 and RSI (relative strength index) at 47.17, momentum indicators are flashing neutral, signaling the stock is in a holding pattern ahead of its results.
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Volatility In The Meme Stock Legacy
Over the past year, GameStop was down 4.43%, with a 24.41% slide year-to-date, though it's posted a modest 4.06% gain this month. The muted trend belies GameStop's meme-stock reputation, where volatility often trumps fundamentals.
With sentiment-driven traders closely watching, tomorrow's report could jolt the stock out of its current range, either reigniting meme nostalgia or reinforcing bearish momentum.
Earnings Could Reset The Narrative
Investors will be watching whether GameStop can sustain profitability and meet its revenue target amid ongoing efforts to streamline operations. While expectations remain muted, the stock's technical setup shows potential energy building.
A surprise beat could fuel renewed interest, while a miss may push it further below long-term averages.
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