Dogecoin, Tesla, GameStop – FinTwit Trends to Watch Next Week


TOP FINTWIT TRENDS – DOGECOIN ($DOGE), TESLA ($TSLA), GAMESTOP ($GME) IN FOCUS NEXT WEEK

  • Dogecoin could be teed up for volatility with the crypto likely to get a shoutout on SNL
  • Tesla price action has struggled to stay afloat but might see renewed buying pressure
  • GameStop looks constructive as the stock forms what may be a bullish chart pattern

Dogecoin, Tesla, and GameStop are three top FitTwit trends likely worth watching next week. These familiar assets have garnered a considerable amount of attention in the past, but trader search interest has picked up noticeably. Market conditions and upcoming event risk warrant keeping close tabs on them as well. What key themes are $DOGE, $TSLA, and $GME traders watching out for in the week ahead?

DOGECOIN – DOGE/USD PRICE CHART: 4-HOUR TIME FRAME (11 APR TO 06 MAY 2021)

Chart by @RichDvorakFX created using TradingView

We recently noted how Dogecoin has been rocketing higher and outperforming other major cryptocurrencies like Bitcoin and Ethereum. In fact, Dogecoin price action is pacing a jaw-dropping year-to-date gain in excess of 10,000% thanks to its latest spike above the $0.60-mark. Increasing demand for the fourth-largest cryptocurrency by market cap has followed its growing popularity as high-profile executives and celebrities hype the alt-coin. Mark Cuban, for example, has been tweeting about Dogecoin’s positive use cases and how the Dallas Mavericks were on track to do 6,000 Doge transactions in April. Not to mention, speculative interest for Dogecoin has likely mounted with markets focused on Elon Musk (i.e. the self-proclaimed ‘Dogefather’) and his performance on Saturday Night Live scheduled to kick-off 08 May at 3:30 GMT.

Crypto traders might want to keep this potential risk event on the radar due to anticipation for Elon to pump Dogecoin. Doge price action has consolidated from its record high around $0.69, but the cryptocurrency seems to be building technical support slightly above the psychologically-significant $0.50-mark. Invalidating the short-term descending trendline could bring a retest of all-time highs into focus before traders consider a push toward $1.00. A breakdown of nearside support might motivate a deeper push by Dogecoin bears toward the 20 April swing high. Politicians talking about regulating the cryptocurrency market stands out as one big threat for Dogecoin and its peers. To that end, SEC Chair Gary Gensler recently stated during a congressional testimony that a regulatory framework should be set for crypto markets. Furthermore, US Treasury Secretary Janet Yellen also made a comment just the other day how cryptocurrency regulation ‘is a topic well worth addressing.’

TESLA – TSLA PRICE CHART: WEEKLY TIME FRAME (NOV 2019 TO MAY 2021)

Tesla Stock Price Chart TSLA Forecast

Chart by @RichDvorakFX created using TradingView

Tesla, another FinTwit favorite, is likely to steal some limelight next week as well. Investors will not only be judging the skills of Elon Musk as a comedian, but more importantly, also stand to scrutinize his general demeanor during the SNL skits. Any off-the-cuff remarks made by Tesla’s chief-executive could dampen investor confidence and hurt TSLA shares. In the grand scheme of things, however, markets may pay closer attention to other fundamental drivers weighing on Tesla’s stock price. TSLA price action has faced notable headwinds since the start of the year as traders unwind exposure to big tech amid rising interest rates.The 66-basis point ascent by ten-year Treasury yields over the last few months has pressured stock market multiples and weighed negatively on companies with lofty valuations like Tesla in particular.

Although, the latest round of quarterly earnings posted by Tesla detailed solid cash flow growth. This stands to help Tesla price action maintain altitude more broadly. The bullish trendline extended through a string of higher lows, in addition to the 38.2% Fibonacci retracement level of its March 2020 to January 2021 trading range, show potential to keep TSLA afloat. Taking out year-to-date lows might subsequently see a sustained slide toward the $400-price level. On the other hand, eclipsing last month’s high near $780 could bring all-time highs back on the radar.

GAMESTOP – GME PRICE CHART: DAILY TIME FRAME (29 DEC 2020 TO 06 MAY 2021)

GameStop Stock Price Chart GME Forecast

Chart by @RichDvorakFX created using TradingView

GameStop has seen little love since the popping of its short-squeeze fueled bubble. GME shares are now down roughly -65% from its 28 January peak near the $480-price level. The video game retailer might start trending on FinTwit again, however, in light of growing search interest and a compelling technical backdrop for the stock. It appears that GameStop could be nearing the end of its consolidation phase and on the cusp of a breakout back higher. This is highlighted not only by two converging trendlines, but also the Bollinger Band squeeze. Bullish trend support connecting the higher lows on 26 February, 25 March, 13 April and 04 May has potential to keep guiding GameStop higher. GME price action also seems to be flirting with a topside break of trendline resistance.

Reclaiming the 50-day simple moving average could reinvigorate GameStop bulls and ignite a bigger rally. This might bring the $260-price level into focus if a resumption of buying pressures do in fact materialize. Traders may want to have an eye out for changes in sentiment and risk appetite to help gauge whether GameStop heads higher or lower next. Looking to the DailyFX Economic Calendar, we can see that the release of monthly inflation and retail sales data is scheduled for release in the week ahead. These typically high-impact risk events could weigh materially on the market’s broader direction and also strongarm GameStop’s stock price.

Keep Reading – 7 Meme Stocks Driving Markets & Making a Mark

— Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight





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