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Another moving average traders will likely have their eye on if GameStop falls below its 50-day is the longer-term 200-day moving average. The rising 200-day average is presently near the $39 level, representing prospective drawback of 71% from current levels.But a stocks decline below its 50-day moving average does not suggest a swift decline back to its 200-day moving average is in order. One sign traders look for to create a buy or sell signal is the crossover between the shorter 50-day and longer 200-day moving averages.A buy signal is flashed when the short-term moving average crosses above the longer-term moving average, as happened for GameStop in September.

GameStop stock rose as much as 47% on Thursday after it discovered technical support at its 50-day moving average.The stock had previously tumbled 34% following its first revenues report considering that a wild short-squeeze stopped working to impress investors.Heres the technical outlook for GameStop stock as it continues to see increased volatility.Sign up here for our everyday newsletter, 10 Things Before the Opening Bell.GameStop surged as much as 47% on Thursday as the stock discovered technical support from traders at its 50-day moving average.The computer game retailers very first earnings release given that the epic January short-squeeze failed to impress financiers, causing a 34% decline in Wednesdays trading session.But buyers of GameStop stock stepped in best around the $125 level, which presently accompanies the 50-day moving average. Moving averages are a lagging trend-following indicator that technical experts utilize to smooth out rate movements and help identify the direction of the present pattern in place.Traders often see the 50-day moving average, which is the average everyday closing cost of a stock over its previous 50 trading sessions, as a short-term moving average that typically represents areas of assistance or resistance for a stock.

Getty Images/ Bryan R. Smith

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