High volatility in Gamestop Corporation stock price on Wednesday which ended trading at $141.00

The Gamestop Corporation stock price gained 14.50% on the last trading day (Wednesday, 23rd Mar 2022), rising from $123.14 to $141.00. , and has now gained 8 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 day the stock fluctuated 19.27% from a day low at $126.55 to a day high of $150.93. The price has risen in 7 of the last 10 days and is up by 34.02% 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, 11 million more shares were traded than the day before. In total, 25 million shares were bought and sold for approximately $3.46 billion.

On Mar 18, 2022 "Wedbush" gave "$45.00 - $30.00" rating for GME. The price target was set to $89.70+2.3%.

The stockhas broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $113.64, a level that may pose a second chance to hit a runner. According to fan-theory $157.02 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

The Gamestop Corporation 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 $100.90 and $110.37. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, March 14, 2022, and so far it has risen 80.51%. Further rise is indicated until a new top pivot has been found. 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. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

Gamestop Corporation finds support from accumulated volume at $140.62 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $24.38 between high and low, or 19.27%. For the last week, the stock has had a daily average volatility of 18.81%.

Since the Gamestop Corporation has been rising for 8 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

Gamestop Corporation holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.