The Michael Burry GEO tradeJust analyzing this purely technically because I like MB and as of now supposedly this is his only long holding. Now, keep in mind this is not a stock for everyone - "The GEO Group, Inc. is a publicly traded C corporation that invests in private prisons and mental health facilities in North America, Australia, South Africa, and the United Kingdom."
So yeah, a lot of people including myself will have problems giving money to this, but when we analyze it purely technically, I can see why MB is very bullish on this for the long term.
First of all, we've broken an enormous MONTHLY downtrend (right side chart is a monthly chart) and we're basing with bullish divergence on the daily chart (left side) - that's usually a good thing to be looking for when trying to ID possible bottoms. Buyers may not all be there, but sellers are starting to dry up. Could it go lower? Absolutely. Then there's the Monthly RSI on the right side chart - enormous bullish divergence within this basing. On the left chart we can see it is retesting a previous resistance area (7.25-7.50) which should now be strong support.
So, I can see why this is very interesting to Mr. Burry. I don't recommend anything, but I thought it was a good example of what these gurus see before things blow up.
