GameStop (GME) and AMC Entertainment (AMC) stocks are making waves again as they surged more than 100% in Tuesday’s premarket. However, as the regular session began, the gains receded to between 50% and 80% due to exchange halts caused by extreme volatility. This sudden plunge in GME stock price from $64 to $45 within the first half hour of trading highlighted the unpredictability of meme stocks.
Despite the volatility in meme stocks, the broader US market is showing a slight positive trend on Tuesday morning, with April’s US Producer Price Index slightly higher than expected at 0.5% MoM. This indicates a cautious optimism in the market despite the ongoing frenzy surrounding meme stocks.
When comparing the recent gains of GameStop and AMC stocks, GameStop saw a 74.4% increase on Monday with significantly higher volume than usual, while AMC stock gained 78.4%. The resurgence in meme stock trading can be attributed to Keith Gill, who has been actively posting hype videos on social media, reigniting interest among retail investors.
Looking at the stock charts, GameStop stock briefly surpassed a previous resistance level around $63, hinting at a possible further uptrend towards the $86 to $87 range. On the other hand, AMC stock has reached a new range high above $11.17, with potential demand levels between $13.50 to $13.90 and gaps to fill at $16.60 and $19.40.
In conclusion, while meme stocks like GameStop and AMC continue to experience extreme volatility and rapid price fluctuations, retail investors remain enthusiastic about the possibilities for further gains. The influence of social media personalities like Keith Gill plays a significant role in driving interest and momentum in these stocks, creating opportunities for both short-term traders and long-term investors to capitalize on the market trends. As the meme stock craze continues to unfold, it is essential for investors to exercise caution and stay informed about the latest developments in order to make informed decisions in this dynamic market environment.
