GameStop Inc (NYSE:GME) Stock Sees Heavy Profit Booking At Higher Level

Earlier on in the year, GameStop Inc (NYSE:GME) had been the toast of the stock market, in a fashion, for having emerged as the original meme stock and recorded enormous gains on the back of collective action of Reddit traders.

Trading Data

On Tuesday, GME stock slumped 13.60% at $213.90 with more than 3.32 million shares, compared to its average volume of 2.74 million shares. The stock has moved within a range of $212.56 – 252.20  after opening trade at $243.84.

Major Trigger

Over the past month, the stock had been in the middle of a strong rally as well and had clocked gains of as much as 40%. However, on Tuesday, the GameStop stock corrected sharply and fell by as much as 10%. Despite the correction, it should be noted that the rally has sustained and the stock is up by as much as 1300% for the year so far.

In recent times, it has been one of the most actively discussed stocks on the Reddit forums and that is possibly an indication that investors could start looking into it once again. Earlier on in the year in January, the stock had hit a staggering $350 a share owing to the concerted efforts of Reddit traders and higher short interest. The recent Reddit activity is important since it can often lead to higher coverage from the media and consequently to a bigger interest in the stock.

Technical Data

GME stock is above the 20-Day and 50-Day Moving averages of $208.82 and $192.80 respectively. Moreover, the stock is trading above the 200-Day moving average of $181.67. The stock is up 26% in the past month.