Gamestop Corp. (NYSE:GME) shares are trading higher Wednesday alongside other meme stock favorite AMC Entertainment Holdings (NYSE:AMC), both on above average volume.
Rebounding markets are causing the stocks to push higher once again after the stocks have been falling for the last couple of months. GameStop is attempting to climb back toward a key level if it can begin to form higher lows.
GameStop was up 15.61% at $115.36 Wednesday afternoon.
See Related: What's Going On With GameStop And AMC Entertainment Shares Today?
GameStop Daily Chart Analysis
- Shares are seeing a strong green day and it could be a sign of a reversal if the stock continues to form higher lows. The stock fell below the higher low trendline and has been dipping since. Resistance has been found at both the $230 and $350 levels in the past.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) saw a jump higher Wednesday and now sits at 40. This shows that although there are still more sellers in the stock overall, more buyers have been moving into the stock. If the RSI climbs back above the middle line, the stock could start forming a bullish trend once again.
What’s Next For GameStop?
GameStop may be recovering but has been trading in a bearish trend and needs to break this trend before one could consider the stock bullish again. Connecting the recent highs on the chart show the stock is in a bearish trend (orange). Bullish traders are looking to see the stock cross above this lower high trendline and begin to form higher lows once again. Bulls also want to see a cross above the moving averages for a possible change in sentiment.
Bearish traders have been in control of the stock throughout the last few months and are looking to see the stock hold below this trendline and have the RSI fall back below 30.
