$GME - Poised For Another Squeeze Towards $324
Looking at the 30 minute chart, we can see that $GME is forming an inverse head and shoulders pattern. However please note that prices are yet to break above the confirmation line which is right around the 220.00 area.
An important factor to note here is that the right shoulder is forming above the 5DMA and the slope of the MA is positive. I therefore expect prices to find support at the 5DMA and continue higher and retest the confirmation line and complete the right shoulder.
Thereafter is about breaking above it and I expect a strong burst in volume if prices do so. A good way to confirm a valid break is to wait for prices to close above the confirmation line before getting in.
A pattern failure will happen if prices close below the low of the right shoulder which is around the 160.00 area and thus becomes a good level to place a mental stop loss at. Provided prices confirm the pattern, I expect prices to retest the highs of 324.00
An important factor to note here is that the right shoulder is forming above the 5DMA and the slope of the MA is positive. I therefore expect prices to find support at the 5DMA and continue higher and retest the confirmation line and complete the right shoulder.
Thereafter is about breaking above it and I expect a strong burst in volume if prices do so. A good way to confirm a valid break is to wait for prices to close above the confirmation line before getting in.
A pattern failure will happen if prices close below the low of the right shoulder which is around the 160.00 area and thus becomes a good level to place a mental stop loss at. Provided prices confirm the pattern, I expect prices to retest the highs of 324.00