A very strong day for Gamestop stock price on Tuesday

The Gamestop stock price gained 5.70% on the last trading day (Tuesday, 16th Jul 2024), rising from $27.00 to $28.54. It has now gained 7 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 5.33% from a day low at $27.37 to a day high of $28.83. The price has risen in 9 of the last 10 days and is up by 22.33% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 6 million more shares were traded than the day before. In total, 23 million shares were bought and sold for approximately $649.87 million.

On May 17, 2024, it was reported that Wedbush gave GME a "Underperform" grade with a "hold" action.

The stock lies in the lower part of a very wide and strong rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $23.69 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift.Given the current short-term trend, the stock is expected to rise 34.74% during the next 3 months and, with a 90% probability hold a price between $31.91 and $79.86 at the end of this 3-month period.

The Gamestop stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $25.88 and $25.95. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Tuesday, May 14, 2024, and so far it has fallen -41.46%. Further fall is indicated until a new bottom pivot has been found.

Gamestop finds support from accumulated volume at $28.22 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $1.46 between high and low, or 5.33%. For the last week, the stock has had daily average volatility of 5.45%.

Since the Gamestop has been rising for 7 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Gamestop stock to perform well in the short-term.