GME [GameStop] Possible Short Squeeze

For the last few weeks, GME has been on both retail and institutional investors' minds, but for different reasons. Today, the pre-market price has broken through a very important resistance line, signaling a further increase in the stock's price.

Institutional investors are overall net short on GameStop, rightfully so. In the age of digital distribution of software, there's little room for physical distribution.

However, GME has come in the picture for retail investors on the hopes of a short-squeeze happening soon.

A short-squeeze occurs when the market, which is short, has to buy back their shares to cover their losses, thus increasing demand/price of that particular stock. See investopedia for more info.

It might be a self-fulfilling prophecy, since retail investors hope to catch the ride early and therefore increasing the stocks price, which in turn leads to institutional investors buying shares to cover their short positions.

The main resistances on the mid-term are located at Resistance 1 and Resistance 2, around $32.50 and 47.50 respectfully. Consider taking some profits around there.