Meme stocks on the move again

6:06 PM May 12, 2022

GameStop (GME.US), AMC (AMC.US) and other meme stocks skyrocketed during today's session boosted by retail investors, despite overall negative sentiment. GameStop jumped more than 20% and was halted for volatility multiple times, while AMC at one point rose over 35.0%, however most of these gains has already been erased. Both companies caught the market attention last year when a group of retail investors create massive short squeezes, which as a result, several hedge funds lost money. Since then both stocks pulled back sharply and numerous hedge funds and short-sellers have started to build positions once again. GameStop has a short interest of 21.4% and AMC 19.5%, according to FactSet.Today's moves were not triggered by any breaking news, therefore it seems that retail traders again drove up the stock prices, which forced short sellers to close their positions and in turn created even greater buying pressure.

GameStop (GME.US) shares are down nearly 50% from recent high hit at the end of March 2022. Nevertheless stock bounced off major support at $41.60 which is marked with previous price reactions. As long as the price sits above it, resumption of the upward move cannot be ruled out. Source: xStation5

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AMC (AMC.US) stock pulled back sharply from recent high around $35.00 which is marked with upper limit of the 1:1 structure and is currently testing support at $9.60. Source: xStation5

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