Chart of the Day - Monday, May 11, 2024

🏆 Today’s Chart of the Day was shared by Michael Nauss (@MichaelNaussCMT).

• GameStop ($GME) surged +74.4% today, logging its 4th best day on record. It closed at a 52-week high for the first time since the peak in January 2022.

• Despite today's rally, $GME closed -20.3% below its intraday high and -65% from its all-time high. Michael points out that $GME kissed the AVWAP from the peak (purple) before pulling back this morning.

• This AVWAP is currently around $36. It essentially represents the average cost basis since the peak. It has been a meaningful inflection point over the past three years. This will be a key level to watch in the near term.

The takeaway: Meme stocks woke up today, with GameStop ($GME) having one of its best days ever. It was up more than +100% this morning before reversing at a polarizing level. Reclaiming this AVWAP would put buyers in control of the trend, but that hasn't happened yet.