GameStop Corp's (NYSE:GME) stock price is up 17.04% year-to-date but down 12.43% over the past month.
The Federal Trade Commission (FTC) recently slapped a fine on CEO Ryan Cohen, adding fuel to the fire, and further stoking the volatility that GameStop stock investors are used to.
Cohen agreed to pay almost $1 million to settle charges from the FTC. His failure to report the acquisition of Wells Fargo shares promptly resulted in a sharp focus on his management.
This legal hiccup hasn't exactly helped GameStop's stock price, and it's left investors wondering whether this meme stock has run out of extra lives.
GameStop Stock Chart Bearish: More 'Game Over' Than 'Level Up'?
GameStop stock's technical indicators are signaling a potential storm.
Chart created using Benzinga Pro
The stock's price sits at $19.51, well below critical moving averages:
- Eight-day SMA: $20.57
- 20-day SMA: $21.58
- 50-day SMA: $22.74
With the stock trading below these moving averages, it's clear that GameStop is under intense selling pressure. The 200-day SMA is also closing in and if the trend continues the stock may drop below this average, signaling long-term bearishness.
Read Also: Jim Cramer Agrees GameStop Should Consider Operating As A Bank And Labels The Meme Stock As 'Massively Overvalued' SPAC
Chart created using Benzinga Pro
The MACD (Moving Average Convergence Divergence) sits at a negative 0.78, confirming a bearish signal.
The Relative Strength Index (RSI) for GameStop stock is 37.89 and declining gradually, putting it in very close to the oversold territory. This could be a ray of hope for traders expecting a bounce back.
However, the stock is still struggling to break through any key resistance levels. This indicates further downside risks.
The Bollinger Bands (25) show a range of $18.81 – $24.47, with GameStop stock trading at $19.51, suggesting that the stock is sitting at the lower end of its range. The risk of it breaking lower increases unless some bullish catalyst intervenes.
Roaring Kitty Returns: A Meme Stock Spark?
Interestingly, meme stock hero Keith Gill, a.k.a. Roaring Kitty, recently resurfaced on social media, and GameStock stock's price saw a small uptick in response.
pic.twitter.com/9xPMBKesNV
— Roaring Kitty (@TheRoaringKitty) September 6, 2024
However, these short-lived bumps are becoming less impactful as GameStop stock investors look for more sustainable growth rather than internet-driven hype.
GameStop may be oversold, but the bearish technical indicators outweigh any meme stock optimism. Unless a significant fundamental shift occurs, the stock seems poised for further declines.
For now, GameStop stock bulls might have to wait until the next big catalyst.
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