Gamestop stock downgraded from Buy Candidate to Hold/Accumulate after last trading session

The Gamestop $GameStop(GME)$ stock price fell by -1.13% on Friday, 16th Jun 2023 from $24.84 to $24.56. It has now fallen 3 days in a row. During the last trading day the stock fluctuated 2.83% from a day low at $24.42 to a day high of $25.11. The price has been going up and down for this period, and there has been a -0.32% loss for the last 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -1 million shares and in total, 4 million shares were bought and sold for approximately $97.86 million.

The stock lies in the middle of a very wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 15.14% during the next 3 months and, with a 90% probability hold a price between $23.22 and $31.23 at the end of this 3-month period.

GME Signals & Forecast

The Gamestop stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $24.35 and $22.57. A breakdown below any of these levels will issue sell signals. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Tuesday, June 13, 2023, and so far it has fallen -8.87%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Support, Risk & Stop-loss for Gamestop stock

Gamestop finds support from accumulated volume at $23.87 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.690 between high and low, or 2.83%. For the last week, the stock has had daily average volatility of 7.02%.

Our recommended stop-loss: $23.11 (-5.92%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 3 days ago.)

Trading Expectations (GME) For The Trading Day Of Tuesday 20th

For the upcoming trading day on Tuesday, 20th we expect Gamestop Corporation to open at $24.70, and during the day (based on 14 day Average True Range), to move between $22.94 and $26.18, which gives a possible trading interval of +/-$1.62 (+/-6.58%) up or down from last closing price. If Gamestop Corporation takes out the full calculated possible swing range there will be an estimated 13.15% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $23.87 (2.81%) than the resistance at $25.70 (4.64%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Insiders are very positive buying more shares than they are selling in Gamestop

In the last 100 trades there were 4.44 million shares bought and 2.49 million shares sold. The last trade was made 7 days ago by Robinson Mark Haymond who bough 9.3 thousand shares. The large amount of stocks bought compared to stocks sold indicate that the insiders believe there is a potential good upside. In some cases larger purchases can be explained by due date for stock options.

Is Gamestop Corporation stock A Buy?

Gamestop holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.