GameStop Bounces Off Support And Could Be Ready To Breakout Soon

GameStop Corp. GME shares were trading lower Thursday morning but parred much of those losses throughout the trading session. The stock fell following its latest earnings print.

GameStop is down 1.1% to $196.50 at publication time.

See Also: Is GameStop Worth More Than $10 A Share? Analyst Slams 'Shameful' Earnings Call

GameStop Daily Chart Analysis

• Shares look to have bounced and could be heading higher in what technical traders call a pennant pattern.
• The price is nearing the end of the pennant pattern after being condensed between narrowing highs and lows for months. The stock may be ready to see a breakout in the coming weeks if it can see a break above pattern resistance.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been climbing higher throughout the past few weeks and now sits at 57. The RSI is showing that more buyers have entered into the stock.

What’s Next For GameStop?

Bulls are looking to see the stock continue to stay above the higher low trendline. Bulls are then looking for the stock to trend higher and be able to break above pattern resistance. This could let the stock see a further bullish push.

Bears would like to see the stock drop back down and fall below the pattern support. If the stock could fall below support and begin to hold it as resistance, the stock could be ready to see a further bearish push.