Why GSX's Breakout Might Not Last- This post is for educational purposes only. Do not buy or sell this stock based upon this post, but only after performing your own due diligence on the company -
Disclosure: Writer of this post has a net short position on GSX.
Fundamentals:
I believe that GSX's breakout over the last past week above $46.5 was driven by a massive short squeeze and participation by foolish retail traders/investors.
GSX currently has 3 research firms calling it a massive fraud. Feel free to google and do your own due diligence on the reports that have been posted by Grizzly Research LLC, Muddy Waters Research LLC, and Citron Research.
There are class action suits from at least 4 different law firms (from what I have found) all stating that GSX has misled investors and that GSX has been fraudulently boosting its Teacher qualifications, student counts, and revenue.
Technical Analysis
When price broke out past $46.5, there was most likely a massive short squeeze, that caused a bunch of investors to cover their positions, causing the upsurge in price. I believe that this was further driven by retail investors who had done little research on the company, and bought it because it went up dramatically, and failed to consider the true risks of this company.
Grizzly
BTCUSD Neutral ShortNew support zone for BTCUSD @ 6800. If the support breaks, new support @ 6400 ( see ).
BTCUSD is clearly bearish but the immediate trend could go either way.
I can see a sea of whales.
Never underestimate the ability for a bear to turn into a bull and the other way around.
One wave at a time.
DON'T APPLY ANYTHING I WRITE.
BTCUSD ShortsI won’t go into the details of how to select the right indicators, as this is beyond the scope of my ideas. I am more inclined to show how we should apply different machine learning models over a data set to determine possible trends. Linear regression has a good degree of precision, especially when backed up by other models to support or to dismiss a trend.
The chart is self explanatory.
DON'T TRUST ME.
BTCUSD ShortsLongs > Shorts = Net long position (but this is not a full net long market)
2 conditions for net long in bearish market = Sustained buying + Flow of new monies
If those conditions are not met the risk > reward = cut loss liquidation, especially considering old longs > new longs.
The old longs will want to cut their losses or break even, so they will exit faster than the new longs.
Brief analysis:
Daily = longs
Everything else = shorts
7350 is a good entry point for BTCUSD if you want to short sell
Misc:
52 is a good entry point for NEOUSD if you want to short sell
I DON'T HOLD ANY BTC. DON'T TAKE ANY ADVICE FROM SOMEONE THAT DOESN'T HOLD ANY BTC. IT IS ONLY COMMON SENSE.
BTCUSD ETHUSD ShortNext stop for BTC is 6400 and 360 for ETH. The market is still bearish with intraday bulltraps being set.
BTC dominance is almost 45%. I would short or liquidate my toxic assets if I held any.
DO NOT FOLLOW ANY OF MY ADVICES.
BTCUSD ETHUSD LTCUSD ShortAt this point everything is self explanatory. One could always long but there is no reason for a pattern reversal at the moment.
The financiers are having fun with your monies. This market is very immature and it is an easy target for the seasoned jugglers and for a certain class of algorithm.
NEVER LISTEN TO ME.
