GameStop Stock Is Now in Overbought Territory as Michael Burry Buys Shares. Is It Too Late to Chase GME Stock Here?

Core Viewpoint - GameStop (GME) stock has seen a recent increase, attributed to investor Michael Burry's confirmation of purchasing shares, indicating potential long-term value despite current overbought conditions [1][3]. Group 1: Stock Performance and Technical Indicators - GME's relative strength index (RSI) has risen to nearly 73, suggesting overbought conditions that may lead to a selloff [1]. - The stock has increased over 20% since the beginning of the year [1]. - GameStop has surpassed its 200-day moving average, indicating an upward trend [4]. Group 2: Insider Activity and Management Strategy - Ryan Cohen's acquisition of 1 million shares strengthens the case for investing in GameStop [5]. - The CEO's performance-based pay plan could result in billions if GME's market cap reaches $100 billion in the next decade, suggesting confidence in the company's growth potential [6]. Group 3: Market Sentiment and Future Projections - The potential for another short squeeze could drive GME stock significantly higher, appealing to high-risk investors [7]. - Options data indicates a possibility of GME trading near $29 within the next three months, although the stock lacks coverage from Wall Street analysts [8].