GameStop Corporation (NYSE:GME) is trending. This week, the stock gained 6.36% to hit a valuation of $137. Last week, the stock gained by 4.15%. We think that the outlook will be highly volatile going forward.
GameStop is a meme stock. The prices are heavily influenced by sentiment among its enthusiasts. Currently, the stock is expected to dip. Inflation numbers are above previous projections of 8.8%. The inflation rate for the month of June is 9.1%.
GameStop faces resistance at $140 hence a sell at $136
Source – TradingView
Technical analysis shows GameStop on a somewhat bullish trend. That trend may not be reliable considering that the general market is still declining. The market is also yet to find a bottom.
The analysis considers that GameStop will tank to levels between $100 and $110. After the decline, meme traders would pump the prices up again. We expect the stock to sustain the resistance at the current levels in the short and medium terms.
The stock has support at two levels. The first support is at $120, while the second is at $100. The resistance level is $140. Since the stock is largely driven by market sentiment, investors must keep watching these levels. We recommend selling now and buying later when the valuation is fully adjusted for inflation numbers.
GameStop is a strong sell at the price of $136. The price will edge lower as the market absorbs high inflation numbers. GameStop will remain volatile for the rest of this year as the market tries to find the bottom.
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