Should You Trade GameStop Stock After At-The-Money Offering?

GameStop Corp GME is a story stock, and the story does not go away, co-host Dennis Dick said Tuesday on Benzinga's YouTube show "PreMarket Prep."

GameStop's Offering News: GameStop announced the completion of an at-the-money equity offering Monday. The company raised $551 million by selling 3.5 million additional shares.

GameStop said the money will be "used to continue accelerating GameStop’s transformation as well as for general corporate purposes and further strengthening the company’s balance sheet."

Related Link: Why GameStop's Stock Is Trading Higher Today

The stock doesn't care about the fundamentals, Dick said, adding that it could go anywhere. 

The "PreMarket Prep" co-host said he wouldn't be surprised if the stock went higher and wouldn't be surprised if it went lower, he said.

GameStop Technical Analysis: $200 is a major resistance level for the stock, Dick said. 

Co-host, Joel Elconin said the stock has traded in a range of $144.70 and $162.98 for nine days.

"Let's see if it wants to come back into that range," Elconin said.

He agreed with Dick, saying that the $200 level looks like "major resistance."

GME Price Action: GameStop was up 6.71% at $180.27 at last check Tuesday. 

Image by Anton Porsche from Pixabay.