The weekly death cross on GameStop is nothing to play around with.
A death cross is when the 200 moving average (red) crosses below the 50 ma (green)
The first 2 times the death cross occurred (yellow circles) GME witnessed a 43% drop and 90% drop respectively.
In the week of August 7, 2023, GME had its third death cross.
Will the death cross play out and GME see more downside or is this a bull flag?
With time, price movement will reveal itself.
Currently GME has been in a downtrend since 2021. And for one full year the 50 ma has been acting as resistance and pushing price down.
On another observation, if this downward channel, after a parabolic rise of 8,200% is a bull flag, then we need to carefully monitor which way price beaks out of this channel.
Will it break below the channel and invalidate the bull flag, or will it break above the channel and possibly head higher?
A death cross is when the 200 moving average (red) crosses below the 50 ma (green)
The first 2 times the death cross occurred (yellow circles) GME witnessed a 43% drop and 90% drop respectively.
In the week of August 7, 2023, GME had its third death cross.
Will the death cross play out and GME see more downside or is this a bull flag?
With time, price movement will reveal itself.
Currently GME has been in a downtrend since 2021. And for one full year the 50 ma has been acting as resistance and pushing price down.
On another observation, if this downward channel, after a parabolic rise of 8,200% is a bull flag, then we need to carefully monitor which way price beaks out of this channel.
Will it break below the channel and invalidate the bull flag, or will it break above the channel and possibly head higher?
Trade active:
Currently price is finding support at its previous high of $16.
If price can't hold at $16 then $14 will be its next test as support.
If price can't hold at $16 then $14 will be its next test as support.
Comment:
GME closed the week of October 13, 2023 at $14.92.
There's strong support around the $14.15 level. It's currently respecting this level. If GME closes a week below this level, the next support level is around $12.50.
If GME continues to fall in price, it may find itself at the bottom of the descending channel, which is in the single dollars.
There's strong support around the $14.15 level. It's currently respecting this level. If GME closes a week below this level, the next support level is around $12.50.
If GME continues to fall in price, it may find itself at the bottom of the descending channel, which is in the single dollars.
Trade active:
Week ending October 23, 2023:
Pretty exciting beginning of the week for GME.
Price got as high as $14.30 on Tuesday, but was heavily sold off and closed the week down 2.38% to $13.12.
There was such strong selling pressure, that the weekly candle printed sort of a grave stone doji.
The next support level is the $12 ish level.
I know I sound bearish, but the oscillators on the daily, 3 day, and weekly charts dictate my sentiment.
Pretty exciting beginning of the week for GME.
Price got as high as $14.30 on Tuesday, but was heavily sold off and closed the week down 2.38% to $13.12.
There was such strong selling pressure, that the weekly candle printed sort of a grave stone doji.
The next support level is the $12 ish level.
I know I sound bearish, but the oscillators on the daily, 3 day, and weekly charts dictate my sentiment.
I wrote the opposite in my original post.