CDR Short Squeeze Failure?This is an update to: www.tradingview.com
As noted before we lacked upward movement that could end 2nd elliott wave in a statistically popular fibo retracement level. As short squeeze against Mevlin Capital inspired detail investors we have reached a popular level of 61.8%. It seems that memes have lost their momentum for buying stocks like GME or AMC according to what can be seen on the charts I assume the same will happen CDR. Just as writing this possibly S&P500 and NDX stocks are starting to loose upward momentum for the day tomorrow might be a crucial day for CDR. Reaching MA200 cannot come unnoted.
New Fundamentals (previous are still in effect):
Polish WIG20 index which CDR is part of has reached a significant barrier where bears can return.
New Speculation (previous are still in effect):
Short squeeze against Melin Capital (still shorting CDR but at significantly lower level) is loosing momentum as panic movements can be observed both on GME and AMC.
7CD trade ideas
CD Projekt to Recover as Sales Beat ExpectationsAs CD Project $7CD.DE new game cyberpunk makes record sales, the stock price has taken a beating due to bugs in the initial version of the game. The stock has all the potential to recover from the slump as sales overwhelm.
According to gaming site IGN Cyberpunk 2077 sold over 10.2 million digital copies, according to Superdata, which makes it the best-selling digital game of all time.
CD Project on the road to repeat dot com yahoo scenarioFundamentals:
CyberPunk 2077 is significantly below expectations
Latest significant patch is not getting only positive results
Speculations:
Sales are significantly down due to refunds and cutting price almost by half of game copy
Technicals:
First downward movement by Elliott Wave theory is an impulse wave that was initiated by fact sellers. Current consolidation fits into wave two but what is not most statistically popular is that it barely bounced 38,2% fibo. It could end soon or we could still see upward movement towards 350 which is located at 50% fibonacci retracement level where that would be an ideal spot to join the short movement.
Cyberpunk 2077: Bagholders are suing!What a terrible game! People have been comparing it with GTA, Saints Row, and other games from 15 years ago, and they have more detail, much better AI, much better animations, than this overhyped mess they worked on for 8 years.
Even lego has better AI and animations.
In Cyberpunk you fire at police they do not react. Some animations are here, and they all look the same so you end up with 20 NPCS doing the exact same thing at the exact same time it's actually scary, very troubling.
There are plenty of videos of it circulating, it is just so bad.
As you can see the share price of this success story (until recently) has been going up in a straight line:
They have been making great games (and profits) on budgets and on a valuation that were not collosal, I do not know what caused them to release this crap, but it's possible they come back, it's just 1 failure.
Maybe the hyped company is overvalued anyway, P/E has been at a factor 1000 for a really long time, it was only a buy because of the linear trend.
A 90% drop would not even be enough for a 50% retrace. And if that happens it will be really ugly and not as interesting on a chart perspective.
So maybe better to avoid (bad valuation + bad chart = nothing left).
It could bottom here and then go up (with a big effort on their part) and continue the trend but I'm not sure this happens.
There are plenty of videos of people of this company that are lying, real lies. They spent a long time hyping the game and not just overselling it but really lying about what's in it.
So now americans have sued the company, whose shares are available to them via these tickers:
Here this page includes what I think is the first class action lawsuit against them:
www.polygon.com
So... Are there any really good games at the moment, like The Witcher? Any great game come out of nowhere with a freshly listed developer/publisher?
All I noticed myself was (all in euros):
Quantic Dream (2010 : Heavy Rain, 2013 : Beyond: Two Souls, 2018 : Detroit: Become Human). They are a (french) private company. Revenues 2017 10MM 2019 14MM.
The british guy with a history chanel on youtube that made the Sniper Elite games and owns judge Dredd rights. Private company. 300 people, no idea about revenue.
Asobo Studio (A Plague Tale : Innocence). Another french private company. Revenues 2017 10MM.
CD Projekt has >1000 employees (the french companies have 180 each), their revenue is 100MM.
Take-Two Interactive (Rockstar, GTA) has 5000 employees and their most recent revenue is 3 billion $ (300 million usd net revenue).
Maybe CD Projekt was too small for such a big project? They made the Witcher, and the french companies made good solid games (but not giant) with far less money & people.
Well the companies that made Saints Row had maybe 100 people, maybe even less. Who knows how much they outsourced?
Meh I really can't tell how this works. Much easier to look at their past results to project in the future, and it is also pretty easy to see when everything will go wrong, but I don't know enough to predict what will happen based on the company fundamentals themselves.
With covid the successful game Plague Inc has had a great success, they made another game but wasn't that interesting.
Who knows what company will go public next, who knows what will happen, how do you hear about them? It seems to me one needs to be attentive and quite specialized for this. I remember hearing of The Witcher but I did not know CD Projekt had gone public until years later and I had better things to do than follow their trend.
More than 10 years ago I was still studying and not trading at all, I had no experience, and I knew with absolute certainty the company Jowood would collapse, and soon, and it did!
So it is possible. And there are some easy bets with gaming companies (perhaps hedge funds do not take them seriously ==> there is not that much competition).
Hey hey hey, with all the independant game devs, especially all the many steam games being made, this is happening:
Not surprising at all. The golden era just started, so this could keep going up. Could risk it (1%), could wait and join the trend if there is one.
At the same time if we are close to the US total collapse you might want to wait a bit.
Not that easy... Once the collapse happened and there is a NWO (Europe? China? Middle East?) with everyone finding their new place, things will be more clear for a long while.
Might want to wait for all this to happen before really investing in anything. Till then it's just quick bets for me.
Analiza CDR/PLN na dzień 07.01.2021Cena akcji CDR po spadkach rozpoczętych 7 grudnia i zakończonych 14 grudnia wyciągnięciem ceny na dużym wolumenie konsoliduje w strefie o podwyższonym zaangażowaniu dużego kapitału.
W tej chwili cena (248 zł) znajduje się w bardzo atrakcyjnym dla strony popytowej położeniu synergii 4 przewag wzrostowych. Są to: granatowa linia trendu, 161,8% zasięgu największej korekty w trendzie, zielona wolumenowa strefa popytowa oraz RSI poniżej 30 punktów.
Cena od dołu jest trzymana przede wszystkim przez granatową linię trendu prowadzącą cenę na CDR już od kilku lat z bardzo precyzyjnym reakcjami cenowymi 12 grudnia 2017, 7 marca 2018, w okresie od 16 listopada do 18 grudnia 2018 i w końcu 14 grudnia 2020. Dodatkowo cena znajduje się w zielonej wolumenowej strefie poptytowej oznaczonej na podstawie świecy z 14 grudnia 2020 o bardzo dużym zaangazowaniu kapitału. Dno strefy wolumenowej przypada na 161,8% zasięgu dotychczasowej największej korekty w trendzie (oznaczonej kolorem czarnym) co jest kolejną wzrostową przewagą statystyczną. Dodatkowo warto zauważyć bardzo wysoką historyczną skuteczność wskaźnika RSI jako sygnału kupna dla akcji CDR. Za każdym razem gdy wskaźnikna interwale D1 spadał poniżej 30 punktów (zaznaczone żółtymi elipsami) był to bardzo dobry moment na zakup akcji.
Traditional|CDR|LongLong CDR
There was a strong and rapid drop of 48.62% in 5 trading sessions.
The fall ended on trend support, attempts to break through this support did not take place and the closing of these days was green candles above the support level.
Two trading days with a breakout of support (14.20.21 and 18.20.21), a new support was formed with the growth of the RSI on lower timeframes.
After a strong fall, a strong and fast rebound of the price to the 0.5 fibonacci level may follow.
Also, if the support is held, growth is possible, but slower.
Take 354,8.
The risk of stop consolidation on the level 232,6.
CDPROJEKT PLAYIn my opinion the perfect entry for CDR is at the key resistance of 352 maybe a little lower if we have a strong momentum but not under 335. Keep in mind that in 19 November they are going to launch the most waited game of the year which already has a proven value at least in the game mechanics area inherited from his predecessor Witcher 3 which was launched in 2015 this combined with an earnings report a few days after it should move the price in the LONG direction.
Be careful and take your profits because right after the earnings report I think the price of the stock should enter his correction phase until future news about monetization or stock buybacks/dividends.
Have a godd play. GPW:CDR
Thanks
Head-and-Shoulders BottomsRelease of ThroneBreaker was massive success. Twitch viewers on release date was about 100K while Hearthstone 40K. This massive success will accelerate Gwent adoption. Also this is company that Is able to create new great titles and monetize them while working on CyberPunk 2077.