Artificial Intelligence (AI) Trading Robot Contributes a 9.73% Gain for GameStop (GME) Last Week: A Technical Analysis
Last week, we saw a promising event as GameStop (GME) share prices surged by 9.73%. While this is impressive in and of itself, what makes it more intriguing is the role played by an AI Trading Robot in this surge. This development showcases how AI has permeated into various aspects of our economy, including the stock market.
To better understand this event, let's take a closer look at the technical details behind this gain.
GameStop (GME) share price moved above its 50-day moving average on June 9, 2023, signaling a potential shift in its market trend. The 50-day moving average is a significant technical indicator widely used by investors and traders to analyze market trends. The shift above the moving average indicates that GME has transitioned from a bearish (downward) trend to a bullish (upward) trend.
This development is crucial for GME as it aligns with the historical pattern of the stock's performance. In 41 out of 46 similar past instances, GME's stock price experienced an additional increase within the following month. This represents an 89% probability of the continuation of an upward trend, statistically speaking.
This bullish signal was identified and acted upon by an AI Trading Robot, leading to a significant 9.73% gain last week. AI algorithms use historical data to identify patterns and predict future price movements. In this case, the AI Trading Robot recognized the trend shift based on the movement above the 50-day moving average and, following its programmed trading rules, executed trades that led to an almost double-digit percentage gain.
The capability of the AI Trading Robot to not only identify but also capitalize on these trends further underscores the potential of artificial intelligence in trading. These machines can analyze massive data sets, identify patterns, and execute trades at a speed and precision beyond human capability.
The AI's performance with GME last week might be an isolated incident or a sign of more to come, depending on various market factors. However, one thing is certain: the role of artificial intelligence in trading and investment decision-making is growing, proving to be a game-changer in the financial industry.
As we move forward, we must carefully observe this trend and the evolving relationship between AI and the financial market. A deeper understanding of this dynamic could potentially unlock new opportunities and risks for traders and investors alike. As always, while AI's proficiency in pattern recognition and execution is formidable, human oversight and discretion remain key in managing overall investment strategy and risk.
GME sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for GME moved below the 200-day moving average on August 30, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on GME as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GME declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for GME entered a downward trend on September 05, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where GME's RSI Indicator exited the oversold zone, of 42 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The Moving Average Convergence Divergence (MACD) for GME just turned positive on August 30, 2023. Looking at past instances where GME's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GME advanced for three days, in of 264 cases, the price rose further within the following month. The odds of a continued upward trend are .
GME may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. GME’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GME’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.139) is normal, around the industry mean (12.170). P/E Ratio (0.000) is within average values for comparable stocks, (24.639). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.668). GME has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.036). P/S Ratio (0.900) is also within normal values, averaging (82.429).
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Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a retaier of video game products and PC entertainment software
Industry SpecialtyStores
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GME and
Correlation & Price change
A.I.dvisor indicates that over the last year, GME has been loosely correlated with CHPT. These tickers have moved in lockstep 46% of the time. This A.I.-generated data suggests there is some statistical probability that if GME jumps, then CHPT could also see price increases.
| Ticker / NAME | Correlation To GME | 1D Price Change % | ||
|---|---|---|---|---|
| GME | 100% | +0.94% | ||
| CHPT - GME | 46% Loosely correlated | -1.38% | ||
| CPRT - GME | 45% Loosely correlated | +0.05% | ||
| CONN - GME | 39% Loosely correlated | -2.00% | ||
| FND - GME | 39% Loosely correlated | -1.16% | ||
| HNST - GME | 39% Loosely correlated | N/A | ||
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