Memes cool down again 🥶🥶🥶

It seems like the meme frenzy was over already this round, with most of the meme stocks retraced back to square after a few days of rally. 

GameStop $GameStop(GME)$  stock rocketed higher before crashing back to earth last week following the return of meme stock hero Roaring Kitty to social media. The price of GameStop shares almost doubled in a matter of days last week, rekindling some of the excitement seen during the meme stock craze of 2021 that also saw the bitcoin price and other cryptocurrencies whipped up to astronomical heights. 

COIN

Recently, the Covid-era Telegram group WallStretBets, which boasts an active userbase of 41,000 traders, is spamming "Coinbase to the moon" in an attempt to boost the share price of the crypto exchange.

COIN daily chart

Great to see that COIN share price managed to break out from its downtrend line (highlighted in Orange) this week, stimulated by the bullish sentiment in crypto market. The potential approval of Ethereum ETF will send all the crypto related stocks higher. For such, I believe $Coinbase Global, Inc.(COIN)$  will join the bullish rally soon. 

AMC

AMC raised about $250 million of new equity capital, completing the sale during the revived meme stock craze triggered by the return of "Roaring Kitty." The movie theater operator sold 72.5 million shares in an at-the-market equity offering that launched in March.

AMC daily chart

If we look at AMC chart above, the stock spiked during recent round of meme frenzy and pullbacked fiercely in a short time. Currently, the stock is back to its EMAs  trendline support and it seems to hold well right now. A third higher low pattern is formed this week as well. As long as the share price stays above the EMAs lines, I am anticipating a rebound in the share price $AMC Entertainment(AMC)$  in short term.

FFIE

Faraday Future Intelligent Electric is gearing up to report fourth-quarter earnings on May 28, 2024. There's no question that the electric vehicle producer has surged to impressive heights recently on the back of last week's meme stock rally. But in one week, investors will learn what the company's financials really look like. 

FFIE daily chart

As compared to AMC, FFIE has a stronger chart pattern, in which the pullback is less significant after the rally. The pullback was followed by a decrease in volume, which is a positive behaviour. I believe next week earnings result will be the key decider of the share price and I tend to vote bullish for $Faraday Future Intelligent Electric Inc.(FFIE)$  given that the worst might be over already for the company. Management will fight for the best result to avoid the company from being unlisted.

RIVN

Rivian reported a worse-than-expected loss in the first-quarter late on May 7 as the company lost 38,784 USD per vehicle delivered. Meanwhile, speculation has run rampant that Apple is looking to partner with the EV startup.

Rivian daily chart

Rivian share price remains boring since end February this year. Since end February 2024, 10 USD always acts as a critical support. As highlighted by the arrows in BLUE, Rivian rebounds whenever it reaches this support line. And last night, the share price retraced and stayed very close to this neckline support again. I believe that the same history will repeat where we should expect a rebound in $Rivian Automotive, Inc.(RIVN)$  next week or very soon. 

Conclusion

In general, meme stock prices are super volatile. If a stock is in the profit-taking stage, it might be overvalued, posing risks to new buyers. Investing in MEME stocks can be an option, but it's essential to do so moderately and with a rational approach.

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