GameStop Surges as Meme Stocks Get New Life With 'Roaring Kitty' Post
Let's go with what we know and look at the meme stock's charts and indicators.
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GameStop GME is trading higher Monday morning on the heels of reports that 'Roaring Kitty' revealed a $116M position by Keith Gill. Gill is a financial analyst and investor known for his posts on the subreddit r/wallstreetbets. He goes by DeepF— Value on Reddit, but media reports have not been verified. It shows five million shares bought at $21.27.
Let's go with what we know and look at the charts and indicators.
In the daily bar chart of GME, below, we have to imagine prices gapping higher and trading in the $40 area this Monday morning. The slope of the 50-day average line is positive and the 200-day moving average line is bottoming.
The On-Balance-Volume (OBV) line is pointed up and the Moving Average Convergence Divergence (MACD) oscillator is above the zero line.
In the weekly Japanese candlestick chart of GME, below, I can see the last two years of price action. Prices have broken a downtrend (not drawn) and trade above the bottoming 40-week moving average line.
The most recent candle is a doji and indicates a balance between bulls and bears. A bullish candle this week will refresh the uptrend. The MACD oscillator is bullish.
In this daily Point and Figure chart of GME, below, I can see an upside price target in the $42 area. And here we are.
Bottom-line strategy: I am not a fan of meme stocks and how many traders have approached the space. Traders who are long GME from lower levels might consider taking profits in the $42 area.
More Gamestop:
- Forget Meme Players… What Is GameStop Really Worth?
- More Than a Meme? Don't Bury GameStop Just Yet
- Gaming GameStop? Read This First
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