Where Will GameStop (GME) Go From Here?

GameStop Corp (GME) Continues To Climb Higher

...And yet the question remains if it can endure for much longer.

The peasant revolution still ongoing in GameStop continues to roar on. At last check, GameStop has now brushed up against the $200/sh price mark, yet another round number that continues to serve as some resistance level in the short-term. Yet the diamond-handed "only up" thesis is unlikely to hold up in the long-term given the weakening fundamentals still ongoing in the underlying company. Barring intense bullish pressure to force the hands of short investors, the reality remains that institutions can often hedge themselves with relative ease in order to endure a prolonged siege on their position.

As such, what really seems to be going on is more or less a reversion to the mean, where diamond hands slowly become more paper-y, and underlying company fundamentals are likely to deteriorate the bullish momentum over time. In the same sense, the overall bullish momentum that shocked the investment community is likely to retain some elevation for the company's stock price above a more fair valuation merely based on company fundamentals alone.

Just based on charting the highs and lows, two mid-term price targets appear to form. The stock is likely to bobble around between the green and purple lines for some time. My best guess is that over time the chart will likely breakdown into a range between the green and red lines.

This suggests that it may be unlikely for the share price to zoom past the $230-240 share price zone for long, presuming it ever reaches there again. Likewise, the stock is unlikely to trade below the $100 zone for too long barring some fundamental shift in available share supply.

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