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More than a quarter was wiped off the GameStop Stock price after a quarterly filing showed the company might sell 5 million shares. Gamestop (NYSE: GME) led popular meme-stocks lower Thursday, losing over $80, closing at $220.39. (-27.16). The retailer announced it might follow AMC Entertainment's (NYSE: AMC) lead and use the recent share price surge to raise capital via a stock offering. The possible dilution sent the stock price sharply lower and is now -38% from Tuesday's $344.66 high. "It appears that other companies, like GameStop, are hoping to follow AMC’s lead by issuing shares and otherwise profit from the meme stocks run-up,” Cresset Capital chief Jack Ablin said. “Investors are taking a dim view of that strategy," he added. On Wednesday, Gamestop reported better-than-expected Q1 earnings, along with the appointment of a new chief executive officer. The company also disclosed the U.S Securities and Exchange Commission had requested documents relating to January's short-squeeze. Wedbush securities have upped their target for Gamestop stock price to $50 from $39. However, the more optimistic outlook is 77% lower than last night's closing price. GME Technical Outlook The daily chart shows the price has broken below trend line support. The trend marked the low of May's rally and has been good support for the last month. Therefore, the break below the trend at $225 is negative. On the other hand, the price has filled a gap on the chart at $217. Investors could view this as constructive. The MACD indicator is pointing lower and clearly shows bearish momentum. The relative strength index (RSI) reading of 34.51 also highlights the weakness in the Gamestop stock price. In saying that, the indicator turned higher in the last 2 hours of trading. The path of least resistance is lower, but a close above the trend line at $225 would keep the uptrend intact. It's worth noting that GME was trading at $230.19 (+4.44%) after hours. Today's close will be key to what happens next week. A weaker close might force weak longs to throw in the towel ahead of the weekend. If, however, the market closes above the trend line, the bulls will finish the week in high spirits. GameStop Stock Price Daily Chart Follow Elliott on Twitter.