The GameStop stock price is down 4.52% as of writing, as it starts the trading day on a negative note. The downturn comes after two days of gains, following a surge in employee exodus and institutional analysts’ downgrading of the stock.
Once the favourite of the WallStreetBets Reddit group, the stock has faced considerable downside pressure since its initial peak in January 2021 and after subsequent rebounds in March/June 2021 and November 2021.
The stock has seen progressively lower rebound peaks, with the March 2022 rebound coming in lower than that of November 2021, which was the last peak of 2021 before the onset of the Omicron variant of COVID-19 sent investors flying through the window.
Three institutional analysts have assigned an “underperform” rating to the stock, setting a median GameStop stock price target of 47.67. This gives a downside potential of roughly 61%. An analysis of the most recent earnings report shows that even though the company has enough stock to last for a while, its expected foray into digital assets is a gamble which comes with long-term uncertainty. At a price-to-sales ratio of 1.8, the stock is also considered expensive. Here is the latest GameStop stock price forecast.
The rejection off the 128.82 resistance will cause a retest of the 115.46 support (2 June and 13 June lows). A breakdown of this pivot gives the bears deep waters to swim towards the 93.01 psychological price support and site of the 21 January and 11 March lows. Before then, the bears may encounter a potential pitstop at the 100.00 psychological support. The 14 March and 12 May lows at 77.86 form an additional target to the south.
On the flip side, a break of the 128.82 resistance is needed for the bulls to have clear skies to aim for 146.30 (22 April high). Above this level, 159.81 (7 January and 6 April highs) becomes the new target to the north. 170.14 and 187.90 are other northbound targets that become available if there is further price appreciation.
This post was last modified on Jun 16, 2022, 16:09 BST 16:09