GME Finding Resistance at 260 Level

By works2020

Updated

Healthy after a large price increase to move sideways and consolidate. My question with GME is the possible 80% trading swing while it consolidates. I don't think it's necessarily bad if GME finds support above 260 and moves slower upwards, have to wait and see. Part of technical analysis and chart recognition is predicting and preparing for the intended direction as it unfolds. Hard to not pay attention to a trade in the 80% range if the triangle pattern holds up, makes for a good trade and is better for GME to consolidate prior to making another run.

Worth noting look at the chart pattern between April and July 2000 when GME was 4.10

Note

volume still weak and RS line weakening as well. more downward momentum in the works will continue to watch closely for a reversal.

Note

prior to today GME down 32% from 260, today alone took another 33% off the price. I expect a day of sideways activity, or hope because I like to see bases form, I know steep declines are tough. can only sit and watch though. to me volume is the key here, if increased distribution believe the downside could be another 30% like today. if it break 95-100 range 40's is the next support and at this point not too hard to imagine. worse for GME the markets are under allot of pressure, so a stock with this much runup in a short period of time in a bad market can be costly. for the record, if you're uncertain of a stocks direction it never hurts to sell, sit it out, take notes and understand what's going on. My golden rule, "always protect my investment first to live another day in the market". If you miss something, understand why and find the next opportunity. Sitting on a 30% loss, or more, is hard to recover from, can take a long time. good luck, not preaching feel 260 was pretty obvious.

final note, 8 out of 10 days distribution and increasing in volume, GME needs accumulation days, either strong above average volume (preferably) or even low volume to stop the bleeding. Will wait and see what tomorrow brings.

Trade closed: target reached

Price didn't pull back, very volatile stock and plenty of lessons to learn.

works2020

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