GameStop (GME): What Lies Ahead ?A pivotal moment as the stock breaks through the channel with a bullish surge, hinting at a potential shift in market sentiment. Here's a closer look:
Positive Indicators:
• Financial Resilience: There are signs that GameStop is gaining control over cash burn and losses, suggesting a possible turnaround in its financial stability.
• Margin Expansion Potential: Optimism brews around the prospect of improved margins, driven by a strategic shift towards higher-margin software sales and ongoing cost-saving initiatives.
• Strategic Capital Raise: GameStop's decision to capitalize on the recent share price surge by issuing shares at a premium indicates a proactive approach to bolstering its financial position.
Challenges and Concerns:
• Earnings Reality Check: Q1 results falling short of expectations raises questions about GameStop's ability to adapt to evolving market dynamics and meet investor demands.
• Management's Communication Strategy: Limited engagement with investors, marked by the absence of conference calls or Q&A sessions, fuels speculation about management's long-term vision and transparency.
• Sales Dynamics: A complex mix of declining hardware sales, shifting software preferences, and the rise of subscription services presents formidable challenges to GameStop's growth trajectory.
Navigating through this landscape of opportunity and uncertainty, investors are left to ponder whether this bullish surge marks a genuine turnaround or merely a temporary reprieve in GameStop's tumultuous journey.
Disclaimer: Market movements are inherently unpredictable. Always conduct thorough research and consider professional advice before investing.
REG
REG - Large Symmetrical TriangleWeekly chart for REG
A large symmetrical triangle is evident
Within this triangle a channel can be drawn around an inverted H&S pattern
This H&S structure is poised to form its right shoulder, which is a bullish part of the pattern
This formation will ultimately lead to the breakout of the larger symmetrical triangle aswell
Bullish price action plotted with bars pattern in green
REG Correlation buyEarlier this year Japara health care (JHC, bottom chart) had a take over bid, pushing the stock to higher prices, outperforming REG. The stock is typically highly correlated, and with the deviation from the mean I'm looking for a return back to the mean. I will be going long REG and potentially taking a short on JHC for a reversion.
REG - Upward channel breakdown short setup from current price REG was running within a long upward channel, followed by a Downward channel. Now seems braking down from a upward channel.
The upward channel brake came with a huge surge in volume, Moneyflow also declined very sharp. We think it has good downward potential.
* Trade Criteria *
Date first found- March 2, 2017
Pattern/Why- Upward channel breakdown
Entry Target Criteria- From current price
Exit Target Criteria- 1st target $61.13, 2nd Target $58.13
Stop Loss Criteria- $72.13
Please check back for Trade updates. (Note: Trade update is little delayed here.)
GENE great buying opportunityStart of a long term, high profit trend. Has continued short interest in the face of reg-sho forced buybacks (buy-ins), brokers are forcing people to cover at a loss and now have the stock on not able to borrow lists. At historically low levels with support and high bullish volume. Reward to risk favors the longs, a wise portfolio investment.