Gamestop Stock Tanks 35% As Roaring Kitty Faces E-Trade Ban

GameStop Stock Price Prediction: When $100?

The massive volatility spikes in Gamestop stock (NYSE: GME) are liquidating the traders on both sides. The unprecedented price action seems to be driven by the Reddit influencer Roaring Kitty, who is the most vocal proponent of the bullish outlook on the stock.

However, despite almost a 100% gain during the pre-market hours on Monday, the stock of the brick and mortar store tanked once the market opened on the same day. The stock closed the day at $21, which was a 36.5% decrease from the intra-day high but still a 21% increase from its previous close.

On Tuesday, the downward price action continues as the stock is down another 7.29%. The bearish reversal seems to be fuelled by the possible legal action against Keith Gill, aka Roaring Kitty. The meme stock influencer posted his Gamestop stock position on Reddit and X, which caused an instant surge in the stock.

Roaring Kitty Holds 5 Million Gamestop Shares

According to the screenshot posted by Keith on Reddit, the meme trader continues to hold 5 million Gamestop shares. The holdings were equivalent to around $115 million at the time of post. In addition, he also held 120,000 call options with the right to buy NYSE: GME at $20 and an expiration date of June 21.

However, despite all the speculation around ‘Gamestock’, the company’s fundamentals remain a cause of concern. Gamestop Corporation is set to release its financial results on 11th June. According to the preliminary results, the company is expected to report a loss of $27-$37 million for the 13 weeks ending on May 14. This would be a decrease from a 50.5 million loss in the same period last year.

Gamestop’s sales are expected to remain within the $872-$892 million range, a significant decline from last year’s figure of $1.24 billion.

Gamestop Stock Price Prediction

While it may appear that GME has a mind of its own, the price is still respecting a few critical levels on the chart. The following chart shows that resistance levels are marked with red lines. These levels need to be broken for Gamestop stock price prediction to turn bullish on a higher timeframe. The most significant level is the $48 level which was tagged in May but the bulls failed to flip it into support.

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