GME - MACD Cross confirmedHi everyone,
Still a bit too early but the MACD cross over happened as what happened with VW squeeze.
The darker blue line indicates the potential 200 EMA that still has to form on the GME chart.
As we can see on the VW chart: price touched the 200 EMA consolidated before breaking the EMA and then consolidating further. Price dropped from the previous candle close another 38%
If a similar thing happens on GME we could see further down trend but from where on will the consolidation channel happen? (orange lines).
In my view it's going more to the bearish side because investors only want to pay a fair price not more.
2 Main possibilities ( i like to keep things as general as possible so every scenario can play out)
1. Let's say the candle already closed then we draw a 38% line from that price down and thus having the support area and a resistance area, 200 EMA still has time to catch up with price action -» these are the full orange lines. price could go up and maybe touches the 140 price area. Then we see a further drop and consolidation (purple line).
2. The candle still has to close thus we will see an even lower price before it catches up with the 200 EMA -» these are the other 2 orange lines. Price catches up with the 200 EMA and consolidates before eventually breaking it.
Could there other scenarios be possible?
Yeah maybe
Could price go higher?
Yeah maybe since the company has now basically the capital to renew itself and hired new executive board members to revive the company.
How high will price go?
Very depends on the actual value and performance of the company. If the company performs well then we see more interest in the stock and investors will follow but this will take a long time.
By that time I think most that were thinking to get rich quick will drop out.
Investing is long term, not short term.
NYSE:GME
