GameStop (GME) has been in a prolonged corrective phase, struggling to regain bullish momentum. Last week, the stock made an attempt to break a key golden ratio resistance but faced rejection, keeping the downtrend intact.
GameStop (GME) Stock Rejected At Key Resistance – More Downside To Come?
Konstantin Kaiser•Thursday, April 3, 2025•2 min read
GameStop (GME) Stock Retraces 40% and Tests Key Support Levels
Over the past three months, GameStop (GME) has declined by approximately 40% after failing to break the 0.382 Fibonacci resistance at $36.5. The stock now finds critical support at the 50-month EMA at $22.2, with the next major support level at the golden ratio near $18.5 if this level fails to hold.
Despite the correction, the EMAs still maintain a golden crossover, confirming the long-term bullish trend. However, the MACD histogram has been ticking lower for the past four months, and a bearish MACD crossover is imminent. Meanwhile, the RSI remains in neutral territory, providing no clear directional bias.
Last week, GameStop (GME) surged to the golden ratio resistance at $29.5, where it faced strong rejection. However, the stock has now established significant support and could attempt another push toward this critical level. A confirmed breakout above $29.5 could pave the way for a move toward the 0.382 Fibonacci resistance at $36.2.
From a technical standpoint, the MACD histogram has started to tick bullishly higher this week, and the EMAs continue to maintain a golden crossover, reinforcing the mid-term bullish trend. However, the MACD lines remain in a bearish crossover, while the RSI holds a neutral stance, signaling caution in the short term.
GameStop (GME) Approaches Bearish Confirmation on the Daily Chart
On the daily chart, GameStop (GME) is at risk of forming a death cross, which would confirm a bearish trend in the short- to medium term. Additionally, the MACD lines remain in a bearish crossover, with the histogram ticking lower, signaling continued downside momentum. Meanwhile, the RSI remains in neutral territory, offering no clear directional bias.
If GME initiates an upward move, it will encounter its next significant Fibonacci resistance levels at $26 and $29.5, which could serve as key hurdles for a potential bullish reversal.
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Konstantin Kaiser
Financial Writer and Market Analyst
Konstantin Kaiser comes from a data science background and has significant experience in quantitative trading. His interest in technology took a notable turn in 2013 when he discovered Bitcoin and was instantly intrigued by the potential of this disruptive technology.
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