GAMESTOP Is today's jump enough to stop the bearish trend?

22 Mar 2023

GameStop (GME) has had a huge price opening jump today that hit the 1D MA200 (orange trend-line) for the first time since October 31 2022. That pump was short-lived and the price quickly resumed the bearish trend within the Channel Down pattern that it has been trading in since November 03 2021. Basically the stock has been inside a multi-year correction since the January 28 2021 historic high.

So is today's rebound enough to stop this bearish trend. The answer from a technical perspective is easy: no unless the price breaks above the previous Lower High of the Channel Down, which is considerably higher at $48.00. Not to mention the the 1D RSI broke above the 70.00 overbought barrier, and this has been a major sell signal inside this +2 year Channel Down.

The most it has risen these 2 years is +157.50% but that was when the RSI was already overbought. GME is a dangerous buy on the current levels. Either wait for a price closer to the Channel's bottom or above 48.00.


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