Are Things Getting Uglier On GameStop's Stock Chart?

GameStop Corp. GME shares are trading lower by 5% to the $150.09 area at time of publication.

GameStop Daily Chart Analysis

• Shares look to have broken out of the bearish side of a pennant pattern. Shares fell below pattern support and have continued to move lower.
• The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as an area of resistance, while the 200-day moving average may act as a place of support.
• After the price was condensed for a while in the pattern, the price broke below pattern support. This is a hopeful sign for the bears, who would like to see the stock continue to fall.
• The Relative Strength Index (RSI) has been falling lower recently and now sits at the 30 level. This is right on the border for the stock to become oversold. Currently, there are many more sellers than buyers in the stock.

From Last Week: GameStop Stock Needs A Bounce Or Things Could Get Ugly

What’s Next For Gamestop?

Bulls would like to see the stock bounce and begin to trend higher. They want to see the stock climb back into the pennant pattern and resume trading within the pattern. Bulls then want to see the stock break out of the pattern and move higher.

Bears would like to see the stock continue to push lower and be unable to find support. They also want to see the stock cross below the 200-day moving average for a potential change in sentiment and trend.

See also: How‌ ‌to‌ ‌Buy‌ ‌GameStop‌ ‌(GME)‌ ‌Stock‌