Gamestop (GME) came across the Bollinger Band screen with a move above the upper band on Thursday. Such moves show underlying strength. Notice how GME plunged below the lower band in early May and then worked its way lower until July with the 20-day SMA acting as a short-term bearish reversal point. Now that the stock has surged above the upper band, watch for the 20-day SMA to act as a bullish reversal area.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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