I was trolled on different social media forums when I predicted a 20% downside for the Gamestop (NYSE: GME) stock price. Most of the people who criticized my analysis were driven by pure emotions and lacked an understanding of the technical analysis. Now, I’m going to make another prediction based on the latest analysis.
On 27 June 2023, I published an article where I gave a price target of $18 for the shares of the brick-and-mortar store. The very next day, I got trolled by the Gamestop holders on Reddit, who thought I was just throwing rookie numbers. The post was made on the r/Superstonk subreddit, which had 900,000 members.
Are You Not Entertained?
To be honest, the trolling didn’t bother me much, as my job as an analyst is to report what I see on the charts. Therefore, whenever I open a chart, I put my personal bias aside and analyze the chart in the most injective way. Even though I forecasted a 20% drop, Gamestop stock price has tanked 35% since then.
After 3 consecutive weekly losses, the price is showing a slight rebound. Most of the people who trolled me on Reddit must be panicking, considering the fact that now the stock is trading at $15.09. However, I’m observing some strong bullish divergences on the chart, which may result in a strong rebound in the coming weeks.
Gamestop Stock Price Prediction
Although time has proven my analysis right, I am still not happy with the outcome, as many people must have lost money due to the crash. While technical analysis may not always be right, it can still provide you with some key insight to manage your risk.
For an accurate Gamestop stock price prediction, let’s analyze a couple of indicators. The following NYSE: GME chart shows that the RSI and MFI indicators are making higher lows while the price is making a lower low. This is known as the bullish divergence, which often results in major reversals.
If the stock avoids acceptance below the January 2023 lows of 15.41, I expect a strong bounce from the current level. However, this forecast will stand invalidated if the price drops below $15.41 and gains acceptance below this support level.
I regularly post my analysis and trades on different stocks and cryptocurrencies on Twitter, where you are welcome to follow me.
