GameStop Flashes Rare Buy Signal: Time to Jump Back In?

• TD Sequential buy signal hints at a potential GameStop ($GME) price rebound soon.
• Key support at $22.00 must hold, or GME may test lower levels around $19.00-$20.00.
• Upcoming earnings on March 25 could determine the stock’s next major move.

After weeks of decline, GameStop (GME) is showing a potential buy signal from the TD Sequential indicator on its weekly chart. 

However, with mixed signals, investors are closely watching key support and resistance levels to gauge the stock’s next move.

TD Sequential: A Glimmer of Hope?

Market analyst Ali Martinez recently pointed out a TD Sequential buy signal on GameStop’s weekly chart. 

This indicator, designed to spot trend exhaustion, suggests that selling pressure may be finally easing. Historically, when this tool flashes a “9” buy signal, a reversal often follows. If this pattern holds, GameStop’s stock could bounce in the coming days.

The stock recently closed at $21.99 , right at a key support zone around $22.00. If buyers show up, the stock could target resistance levels in the $25.00-$27.00 range. But if that $22.00 support cracks, the stock could test the $19.00-$20.00 area.

Related: Crypto Market Fluctuations Tied to GameStop, Strong US Jobs Data

Mixed Signals: Bulls vs. Bears

While the TD Sequential indicator signals a potential reversal , other technical indicators paint a more nuanced picture. The Relative Strength Index (RSI) sits at 39.56, indicating weak momentum but not yet reaching oversold conditions. 

A push above 41.17 could confirm a short-term rebound. Just so to be clear: the RSI isn’t screaming “buy” just yet.

The Moving Average Convergence Divergence (MACD) indicator remains slightly negative, with the signal line hovering around zero. This suggests a lack of strong momentum in either direction. However, a bullish crossover, where the MACD line moves above the signal line, could signal a trend shift in favor of buyers.

The Bigger Picture: Macroeconomic Worries

GameStop’s recent struggles aren’t just about the company itself. Broader market concerns, including fears of an economic slowdown and trade policy uncertainty, are weighing heavily on the stock. 

Earlier this month, new tariffs imposed on imports from Canada, Mexico, and China caused increased volatility in the stock market. These macroeconomic factors continue to spook investor sentiment, making GameStop’s price action more unpredictable.

Related: GameStop Shares Skyrocket Amid Renewed Retail Investor Fervor

Despite these challenges, the upcoming fourth-quarter earnings report on March 25 could be make-or-break. Strong results could reinforce bullish sentiment, while disappointing numbers may extend the downtrend. Investors should watch trading volume and confirmation candles to validate any potential reversal. In short: keep an eye on earnings and volume.