GME climbs to highest close since May 15, 2019
GameStop Corporation (GME) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GME ended Wednesday at 8.68 surging $1.59 (22.43%), notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a year. Today's close at 8.68 marks the highest recorded closing price since May 15, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 7.26, GameStop confirmed its breakout through the prior session high after trading up to $1.78 above it intraday.
Daily Candlestick Chart (GME as at Sep 16, 2020):
Wednesday's trading range has been $2.01 (28.59%), that's far above the last trading month's daily average range of $0.73. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GME.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on August 31st, GME gained 14.52% on the following trading day.
Buyers managed to take out the key technical resistance level at 7.17 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for GameStop. Out of 37 times, GME closed lower 56.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 64.86% with an average market move of -1.05%.