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GameStop Corp.(NYSE:GME) shares are traded lower Thursday. The stock was a WallStreetBets favorite and seems to have lost some gas since its initial run-up.

After hitting an intraday low of $159.48, shares closed at $166.82.

GameStop Daily Chart Analysis

• Shares have been sliding downwards and are nearing potential support in what technical traders call a pennant pattern.
• The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The stock may find resistance near the 50-day moving average, while the 200-day moving average may act as support.

Key GameStop Levels To Watch

• The pennant pattern began forming in early 2021 after the stock saw a huge short squeeze.
• The price may continue to be condensed between narrowing highs and lows until it breaks past the pattern’s support or resistance, which will possibly cause a strong move in the same direction.
• The Relative Strength Index (RSI) has been falling lately and sits at 32. The RSI is nearing the 30 level, which marks the start of oversold territory.

What’s Next For GameStop?

Bulls would like to see the stock bounce at pattern support and start moving higher. Bulls would like to see the stock trade within the pennant pattern for a little longer before breaking out and potentially moving higher. Bulls also want to see the RSI start rising and more volume coming into the stock.