GameStopLong
GME forming a cup and handle
Updated
It looks to me as if we are forming a base after downtrend since match 10th lost steam. I expect a trend reversal over the next few weeks and a retest of the level at 280.
This is commonly referred to as a "Cup and handle" pattern. It's a very strong and very reliable bullish pattern.
The underlying psychology is bulls running into a resistance, they retreat to form a base. Meanwhile the bears try to shake out paper hands, forming a slowing downtrend. At the base we have a stalement between bears and bulls, until the bears realise they now only face diamond handed bulls, leading to a retreat of the bears, a retest of the resistance and the eventual break, followed by the continuation of the initial uptrend.
Trade idea: GME long stocks.
Stop loss: if GME breaks 116 to the downside, I consider this prediction to have failed.
Take profit: If you are just trading the technicals, the handle will likely begin at 260 to 280. If you believe in GME, buy and hold.
This is commonly referred to as a "Cup and handle" pattern. It's a very strong and very reliable bullish pattern.
The underlying psychology is bulls running into a resistance, they retreat to form a base. Meanwhile the bears try to shake out paper hands, forming a slowing downtrend. At the base we have a stalement between bears and bulls, until the bears realise they now only face diamond handed bulls, leading to a retreat of the bears, a retest of the resistance and the eventual break, followed by the continuation of the initial uptrend.
Trade idea: GME long stocks.
Stop loss: if GME breaks 116 to the downside, I consider this prediction to have failed.
Take profit: If you are just trading the technicals, the handle will likely begin at 260 to 280. If you believe in GME, buy and hold.
Note
Two weeks on, I feel like this has aged quite well. The rise actually came in much quicker than I expected. As mentioned I expected another week or so of stagnation until we move upwards. Now I would have to expect to reach the short term top at 260 to 280 within the next week or two.
Trade closed: target reached
I was slightly off with the numbers, and the timing was quicker than I've expected, but overall, I consider this idea to have been successful
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