GameStop Corp. (NYSE:GME) shares are trading higher Wednesday.
GameStop is a popular ticker among Reddit traders. The two most common subreddits for GameStop traders include Superstonk and WallStreetBets. The stock was trendline throughout the day on social media sites.
GameStop was up 4.69% at $184.06 at market close Wednesday.
GameStop Daily Chart Analysis
- Shares look to have almost broken out of what technical traders call a pennant pattern. If the stock can push above the pattern resistance it could see a possible further bullish push.
- The stock has been condensed between narrowing highs and lows, with it nearing the end of the pennant pattern. The pattern is getting close to the point where the stock does not have much more room to go. An above-average volume day could cause the stock to see a breakout.
- The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
- Each of these moving averages may hold as a possible area of support in the future.
- The Relative Strength Index (RSI) has been pushing higher the past few days and sits at 52. This shows that the buying pressure now outweighs the selling pressure. The RSI is nearing the overbought range that begins at 70 on the indicator.
What’s Next For GameStop?
Bullish traders are looking to see the stock continue to trade within the pattern until it sees a break over resistance. If the stock can break resistance and begin to hold it as support, it could be ready for another leg up.
Bears are looking to see the stock fall below the pattern support. This could cause a further bearish push. Bears also want to see the stock fall below the moving averages for a possible change in sentiment.
Photo: Mike Mozart via Flickr
