The meme stocks of WallStreetBets shone on Wednesday, with Gamestop stock price surging 12% to shake off Tuesday’s lackluster performance.
Gamestop stock price rose slightly on Tuesday but lagged behind its meme stock peers. However, new demand on the stock brought out a double-digit bullish performance on Wednesday, even as AMC continues to be the shining light of the meme stocks.
With today’s performance, the bullish harami pattern that was formed by the daily candles of 31 May and 1 June has been confirmed, allowing the Gamestop stock price to ascend beyond a key resistance point.
Technical Levels to Watch
As indicated in my analysis of the Gamestop stock price, bulls needed to form an outside day candle that breaches the 269.54 resistance to confirm the bullish harami. We got that today with the 12% surge. The 295.38 resistance ended up stalling further advance on the stock and thus remains the target to beat. An uncapping of this level opens the door towards the 10 March high at 348.08.
On the flip side, a breakdown of 269.54 on a return move allows bears the leeway to push towards 222.00. Below this level, a further decline brings 187.90 and 160.00 (17 May low) into the picture as additional targets to the south.