Analyzing GameStop GME Stock Chart

For those of you trading the meme stocks.... this one for you.

I took at look at Gamestop (GME)

Here's my analysis...

Watching in the 1 Hour chart.

Positives:
Price is bouncing off lower trend line.
Currently price is hitting previous support.
RSI and MACD reading oversold.

Negatives:
Price met a lot of resistance above $200
Current trend is down
Fundamentals are weak
Price prior to the Reddit move was well below current levels.
P/E is astronomically high at 10,140!!
In comparison, AMZN is around 80... and even that's high.

Opinion:
This is a highly risky trade.
Based on technicals, there is potential for a run-up again to $300-400 range. But this is a huge maybe considering it's majority depends on retail and not institutional money.

If it does run, it will end very quickly like previous runs.
In my experience, market makers like to project possible run up influencing the technicals that retail traders are using, convincing traders of a run before they pull the rug from under you.

If you do decide to enter, I'd look for a current dip to previous lows before entry and have tight stop losses in place. As always, don't use money your not prepared to lose. set your take profit within reason of the upper support and... don't be greedy.

As usual.. this is not investment advice. DO YOUR DUE DILIGENCE!

Best of luck trader!