Gamestop (NYSE: GME) stock price is not looking very bullish after a rejection from the yearly high. In June, 2023, the Game stock surged to a fresh yearly high but couldn’t gain strength above the March high. Consequently, the meme stock is now retesting the $23.5 support level.
The US stock market is experiencing a negative sentiment this week. Since the start of the week, S&P 500 and NASDAQ 100, both indices have been sliding. As a result, Gamestop stock is down 2.87% this week and is eyeing more downside.
According to the most recent Gaemstop news, the company has fired its CEO and appointed Ryan Cohen as its Executive Chairman. This marks the fifth CEO exit in the last 5 years. The company didn’t provide any reason behind the sudden move.
Gamestop stock price is currently more than 80% down from its all-time high, and there are no signs of recovery. It appears to have become just a meme stock that often experiences huge volatility spikes. The stock doesn’t appear to be a great long-term buy at the moment.
The NYSE: GME stock chart shows that the stock surged as the latest quarterly report revealed a profitable quarter for the first time in the last two years. However, the bulls lost momentum after tagging fresh yearly highs, and the price tanked 17%.
Gamestop stock price prediction will become extremely bearish if it breaks below $23.5 support. In this scenario, I expect a retest of the May lows, which lies around $18. This will be more than 20% downside from the current price level.
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This post was last modified on Jun 27, 2023, 09:09 BST 09:09