GameStop Corp. stock, which has been at the center of a volatile, Reddit- and Robinhood-driven ride this year, rallied Thursday.
The stock was up 48.37% at $178.79 ahead of the close. Here are some technical levels in GameStop shares for traders to watch.
GameStop Short-Term Chart Analysis:The 5-minute chart above shows three potential key levels to watch in GameStop shares.
The stock is trading in a channel between $150 and $200. The $200 level is an area that held as support before turning into resistance after falling below $200.
The stock showed some support near the $150 level Thursday. This area has shown support in the past and may hold again in the future.
If the $150 level were to be unable to hold, the stock may not find support again until near the $120 level. This was an area where the stock was able to find support premarket Thursday.
GameStop is trading above both the 200-day moving average (blue) as well as the volume-weighted average price (pink), indicating possible short-term bullish sentiment in the stock.
GameStop Daily Chart Analysis:The daily chart above shows GameStop found support near the $125 level after it broke above this price level, which was previously holding as resistance. This is an area where the stock may be able to see a bounce again in the future.
The stock has shown previous resistance near the $300 level, as the price was unable to break above this level and hold. This indicates the level may hold as resistance in the future.
Bulls would like to see GameStop rise up to resistance before breaking above and consolidating. Retesting the resistance level as support may hint that the stock will see a rise in price.
Bears would like to see the support levels break. If the price is able to break below these levels and consolidate, the price may be able to move down.