GameStop Shares Continue To Bleed Lower: What's Next?
GameStop Corp. (NYSE:GME) shares are trading lower Friday alongside other retail and apparel stocks following data that shows a drop in retail sales. The stock has recently fallen below the higher low trendline in what traders call an ascending triangle pattern.
GameStop was down 4.8% to $116.59 at time of publication.
GameStop Daily Chart Analysis
- Shares look to have recently crossed below the higher low trendline in what traders would call an ascending triangle pattern. This shows the stock has been unable to form higher lows and continue the bullish trend it was on.
- If the stock can recover, it may find strong resistance near the $230 and $350 price levels.
- 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 steadily falling for the past few months and now sits at 30. This shows that the stock is on the border of the oversold region and is seeing much more selling pressure than buying pressure. If the RSI continues to stay in this region, the stock price could continue to fall.
What’s Next For GameStop?
GameStop breaking below the higher low trendline shows that the stock is seeing much bearish sentiment. Bears are in control of the stock and are hoping to see it stay below the moving averages and hold below the higher low trendline.
Bulls want to see the stock bounce back and start to form higher lows once again. Bulls want to see the stock cross back above the moving averages and break above the $230 level to see the sentiment turn bullish once again.