GameStop’s recent bounce from the $150 triggered yet another short squeeze that resulted in the price breaking above $250. GameStop is one of the most traded stocks, a meme stock that ended up very popular in 2021.
The share price is up over $1,000% this year alone, one of the strongest performers on the US stock market. The company operates over 4,800 stores in the United States and employs over 23,000 people.
GameStop became popular after a massive short-squeeze at the start of the trading year led to the price rising from $50 to over $450. Hedge funds being on the short side of the market, have suffered huge losses, but the price remained elevated even after their exposure.
At the current levels, the $150 marks a pivotal area for GameStop for the period ahead. A break above $350 may trigger more strength, while a move below $150 is bearish.
Bulls may want to stay on the long side as long as the share price remains above $150. A daily close above $350 is bullish, with the market likely to retest the recent highs. Bears may want to go short on a break below $150, although shorting a stock like GameStop, notorious for its short squeezes, may be tricky.
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