The Gamestop stock price rose on Tuesday, but the gains experienced by this stock paled compared to other meme stocks that surged strongly on the day. Gamestop’s stock price rose nearly 9%, but this falls far short of other meme stocks such as AMC’s stock price, which rose almost 25% when filing this report.
Gamestop stock price fell heavily on the last day of trading in May, and the slight gain on the day shows the stock is yearning for fresh, strong demand to take it to the next level. The price picture is a bullish harami, but any hopes of a resurgence require additional follow-through buying to take it past the $270 price mark.
Tuesday’s 8.62% gain still falls far short of the highs of the past two trading sessions. A lack of follow-through buying could put the Gamestop stock price under pressure, challenging the support at 222.00 in the process. A breakdown of this level allows 187.90 (27 April and 18 May highs) to come into the picture, with additional downside targets at 160.00 (psychological support and 17 May low) and 136.23 (11 May low).
On the other hand, bulls need to see more buying momentum to clear the 269.54 resistance. Therefore, the bearish harami formation requires an outside candle that clears 269.54 with a 3% penetration to confirm the breakout. Once clear of this resistance, the Gamestop stock price targets to the upside come into the picture at 295.38 and 348.50 (10 March high).
