GME 5/25/2022GME
Game stopped. “Investors” aka bag holders holding on to hope not realizing what is low, can go lower.
Multi timeframe analysis.
Daily Chart
Price is currently in the middle of a down moved. It is one lower low away from confirming major downtrend.
Price is currently still under both 200 and 50 ema confirming bearish conditions. Price at 50ema
1HR Chart.
After price reached low of 78.38, it bounced up where it found resistance in 100 area
Price flagged and broke out on a parabolic move. Parabolic moves on breakouts are susceptible to false breakouts.
The breakout parabolic move is running into 200ema which is acting as dynamic resistance.
We also have an overbought reading on the Stochastic indicator.
Expecting parabolic move to be a false breakout and price to fall back into range and break down to 78.
On the daily chart, we have extreme bearish conditions. Death cross, breakdown from long tern range, and we have a possible existing downtrend with price coming into resistance @ 50ema
Then on the 1hr chart, we have a parabolic move into resistance @ 200ema with an overbought stochastic.
GME has a lot of sell pressure on both charts.
Overbought stochastic reading at resistance level is my cue to enter trade short.
Entry: 113.73
Stoploss: 123.07
Target: 78.00, 31.36%, 3.78 RR ratio
