GameStop (GME) has garnered a lot of attention lately. We just did a google search of the phrase "GameStock stock" and got 26,800,000 results. This is less than a search for "Tesla (TSLA) stock" with 215,000,000 responses but it is pretty amazing, in my opinion, and shows that it is a center of traders' attention. And we certainly have it covered here on Real Money here, here, here and here.
Let's check out some intraday charts on GME to see what they suggest today.
In this Japanese candlestick chart of GME, below, we used 15-minute data. Yes I know that the essence of candlestick charting is based on the relationship of the open to the close and that concept does not apply to intraday prices as there is no hard close at another time than 4 p.m. We can see upper shadows above $90.
The intraday On-Balance-Volume (OBV) line shows a rise over the past five days even as prices declined. This suggests that there have been buyers who have been more aggressive on an intraday basis. I am going to make a leap of faith and assume that these intraday buyers will want to jump ship if prices slip below $80 and more so if they break $70.
In this Point and Figure chart of GME, below, we used data on the average-true-range to show that prices are currently in a down column of O's.
Bottom-line strategy: Some well connected journalist may get to the bottom of GME in the days ahead. I am sure it will be an interesting story. Meanwhile, in the very short run it looks like GME could weaken further if $80 is broken on the downside. That is not a recommendation to go short. Just an observation.
