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  /  Cryptocurrency   /  Is GameStop’s meme rally over, or the stock carries some juice to be squeezed?

Is GameStop’s meme rally over, or the stock carries some juice to be squeezed?

GameStop

If you love GameStop Corp (NYSE:GME), you already know how hard it is to catch lasting momentums. However, it is one of those stocks that tend to return massively after a simple call on Reddit. That is what has been happening to GameStop lately.

The last week has been characterized with interest in meme stocks led by Bed Bath & Beyond. Retail investors grew curious that GameStop Chairman Ryan Cohen held onto his BBBY stake. That was revealed in a Tuesday filing, igniting interest in sister meme stocks GME and AMC. Both stocks were already gaining as risk-on sentiment gripped retail investors. A day later, Cohen was back with the intention to sell the entire stake. That forced a crash that wiped out the previous day’s gains.

With no important fundamentals, GME investors pushed the stock above $47. It now trades at $34, with more than 7% losses in the past 24 hours. As the BBBY-inspired rally subsides, GME could follow suit.

GME falls below the 50-day MA as the rally comes to a halt

Source – TradingView

Technically indicators show that GME has crashed below the 50-day MA. The MACD indicators are pointing to bearish momentum. The bearish momentum is likely to continue as the meme-inspired rally comes to an end.

Summary

The GameStop rally was inspired by speculations. Investors buying the stock need to know that a bubble could burst as the price declines. The stock has fallen below a key 50-day MA, pointing to a building bearish momentum.

The post Is GameStop’s meme rally over, or the stock carries some juice to be squeezed? appeared first on Invezz.