GME - ABC CorrectionGME appears to be setting up to complete an ABC corrective wave on the daily chart. Price appeared to breakout of the Wave B downtrend on Thursday of this past week. Looking for confirmation of the break-out tomorrow or by Tuesday. Price may want to double back-test the breakout, Wilder MA, and/or nearby fib...watching closely.
If confirmed, Wave C should be as long as Wave A and given the strong RSI/overall momentum, substantive MA supports, price &vol support at $150ish, and very oversold status of the stoch on the daily - I expect the Wave C to move up soon. Looking for a move upwards somewhere between the 1.272 fib and the 1.618 fib channels as plotted. Of course we could get another suspicious halt or some other fuckery but the indicators and chart sure looks like it will pop and complete the Wave C.
Will look to add to longs on breakout confirmation but if I add calls - will not go too far OTM. Last Nov the indicators had a similar set up and GME could only manage a double top formation. If that happens this time price will obviously only get to ~200ish. And if this isn't a ABC corrective wave and is instead a impulse wave or something else -price could go back down low 100s. But I just don't see it happening given all the reasons cited above. And if Wave C plays out as anticipated, and these corrective wave patterns tend to overshoot, but we will just have to see. The blatant unjustified BS halt on March 29th was eye opening to say the least...As always caution is warranted.
And I added fib channels back into to my GME chart because it is Easter and I like bright crayon colors, …and after seeing this Taste the Rainbow post on reddit: www.reddit.com It isn't unique to GME and I'm not sure if it has any relevance/validity. Thoughts?
Not financial advice.
Happy Easter!
