GameStop Corporation (GME) is no longer surging higher.
Just the opposite is happening.
The 42-fold jump in late 2020 is long over, and shares are now trending lower.
In December, GME crossed its crucial 200-day moving average.
Shares quickly fell 53% in less than two months.
Now is not the time to buy GameStop.
Now is the time to short it.
And here’s where I would do it…
GME has formed a short-term uptrend since plummeting below $90.
This is common. After all, stocks don’t go straight down or straight up.
But volume is declining. And it looks like buyers are drying up.
GME is also brushing against its 50-day moving average, which will likely act as resistance and keep the stock from going higher.
To short GME, you want to do so when it breaks the white trend line on the chart above.
You have the 21-day moving average, the 50-day moving averages, and several tight closes in a narrow range.
If last week’s high gets taken out, that would mean I’m wrong, and the stock is not ready to go lower. So I would put my stop at $133 to protect myself.
Embrace the surge,
Editor, Stock Surge Daily