This year has been full of super rational asset price fluctuations, and GameStop is certainly one such asset. The stock jumped over 20% today on very little news. There are some technical reasons for today's move, which we will try to explain in this article.
Today's move in GameStop (GME) shares really got cooking when the shares broke above last month's high of $196.97/share this afternoon. Shacknews had previously notified our readers about this important price level to watch in an article posted just eight days ago. The stock currently has an inside month and up buy signal, which will remain active until the end of May.
But this stock isn't just being governed by technical analysis, right? There are memes at the core of the Reddit revolution that drove GameStop to absurd valuations in January, and today is no different. Future Chairman of the Board and potential CEO Ryan Cohen tweeted out this suggestive gif this morning:
Don’t try this at home pic.twitter.com/198rbMA4CG— Ryan Cohen (@ryancohen) May 25, 2021
Now some editors would probably spend the next few paragraphs waxing poetic about what a boner gif tweeted by a billionaire would mean, but I will leave that for the Internet detectives at r/Superstonk to figure out. It is entirely possible that Mr. Cohen was referring to the share float of GameStop's stock, or he might have just taken too many edibles today. We can't be sure, and I don't get paid enough to think much more about it. One thing we know for sure is that Redditors love Ryan Cohen's tweets almost as much as those of Keith "TheRoaring Kitty" Gill.
What we do know is that GameStop has a buy signal on the monthly chart above $196.97/share. Sadly, there are only 6 days left in May, so traders will have to be quick and nimble if they want to take advantage of this return to momentum for GME. The GameStop annual shareholders meeting is set for next month and could be the next real catalyst for a stock move in either direction, so keep it locked on Shacknews as we lead up to the event.
What do you think of GameStop? Hate the store? Love the store? What do you think of GameStop's stock? Ridiculously overvalued? Greatest stock of all-time? Let us know your thoughts in the Shacknews Chatty comments section below! We really want to know what you think.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.