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GameStop (GME) stock jumps 35% as buy signal breakout appears on monthly chart

GameStop is delivering power to the players again today with another massive short squeeze run. The stock soared nearly 35% today.
Captain Business
Captain Business
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It's been tough sledding for GameStop shareholders this summer, with the stock languishing between $140-200/share for many weeks. Things perked up a bit today, as the stock topped it's highest price level since July 1, 2021 today. 

GameStop (GME) shares are having their best daily performance of the summer. With the stock up 30% on the day.
GameStop (GME) shares are having their best daily performance of the summer. With the stock up 30% on the day.

GameStop (GME) shares hit an intraday trading high of $225/share earlier today, and while it appears there may be some profit-taking by traders going into the close, the stock is having its best day of the summer. Many traders, investors, and onlookers are trying to explain today's share price move, and while there are some fundamental reasons underpinning the move, but the stock is also in a very interesting place on the chart. 

GameStop (GME) monthly chart shows some more momentum can come into the stock if it breaks out above last month's high of $216.86/share.
GameStop (GME) monthly chart shows some more momentum can come into the stock if it breaks out above last month's high of $216.86/share.

While the shares have pulled back a bit in the final hour of trading today, there is a key buy signal level to pay attention to on the GameStop monthly chart. A breakout above last month's high of $216.83/share triggers an outside month up buy signal. This momentum could continue into September if the stock breaks out above August's high point. Right now, there are only a few days left in August, but traders will now have a new fence post to watch for another signal of continued momentum. 

Today's share price movement up 35% at one point during trading isn't happening in a vacuum. GameStop was recently added to the S&P 400 MidCap Index and a lot of institutions have been buying and selling the stock over the past few weeks. There was also some news over the weekend that noted GameStop short seller Melvin Capital is having $500 million pulled out by their buddies Citadel. Citadel is a leading market marker for GameStop and has come under scrutiny due to their complicated relationships with short sellers and Robinhood.

It's a good day if you are long GameStop shares, but many investors still find themselves underwater after buying into the short squeeze hype in January 2021. Only time will tell if GameStop will return to its all-time high share prices, but today's move is nothing to scoff at. Momentum may be returning to the meme stocks, and technical traders have a signal to pay attention to on the monthly chart for the first time all summer. 

This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

Full Disclosure:

At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, and his company Virtue LLC had the following positions:

Long GameStop via GME shares

Long GameStop via GME call options

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