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Volatile ride for Gamestop Corporation stock price on Thursday moving between $227.00 and $264.00

StockInvest.us, 3 months ago

Gamestop Corporation

The Gamestop Corporation stock price gained 4.77% on the last trading day (Thursday, 27th May 2021), rising from $242.56 to $254.13. , and 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 day the stock fluctuated 16.30% from a day low at $227.00 to a day high of $264.00. The price has risen in 8 of the last 10 days and is up by 54.49% over the past 2 weeks. Volume fell on the last day by -6 million shares and in total, 15 million shares were bought and sold for approximately $3.88 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

The last rating was given by Telsey Advisory Group on March 30, 2021. The price target was set to $33.00 → $30.00.

The stock lies the upper part of a very wide and falling trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at $256.95 will firstly indicate a slower falling rate, but may be the first sign of a trend shift.Given the current short-term trend, the stock is expected to fall -3.41% during the next 3 months and, with a 90% probability hold a price between $105.52 and $248.19 at the end of this 3-month period.

Gamestop Corporation

The Gamestop Corporation stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $200.32 and $168.69. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. 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 Wednesday, March 10, 2021, and so far it has fallen -4.10%. Further fall is indicated until a new bottom pivot has been found.

Gamestop Corporation finds support from accumulated volume at $246.90 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 $37.00 between high and low, or 16.30%. For the last week, the stock has had a daily average volatility of 12.07%.

The Gamestop Corporation stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the stock manages to break the trend before that occurs.Since the Gamestop Corporation 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 are positive, despite the stock being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for stock to perform well in the short-term.

Check full Gamestop Corporation forecast and analysis here.