[WSB] How To Trade The Actual GME Short-Squeeze #2
Updated
Friends, as you already know, the GameStop Stock (GME) was recently picked up by the subreddit r/wallstreetbets.
The theory and technicals, which led to our entry at ~$17, are explained in the previous idea i shared with you guys (linked below).
The price respected the trendline (black) three times during this uptrend. We saw a retracement in the shape of a cup each time,
followed by another breakout. The same thing happend before, while the price was moving in a parallel ascending channel (red).
For whatever reason, the price pumped 57.17% each time.
So we can say that the price of GME tends to move in some sort of patterns.
Let's try to apply these patterns to the current situation and find the best possible entry for those who missed to pump or for those
want to increase their position size.
From a technical point of view, we would like to see the price re-testing the trendline. This usually happens during a pullback.
Pullbacks occure after a strong breakout. Those who previously bought (f.e. in the past months) take their profit and new traders emerge on the market - the journey continues.
We can see a new trend emerging, which might be moving more aggressive. Please be aware that during an actual short-squeeze, we see insane price-jumps and huge sell-off later.
Please manage your risk accordingly.
Let me know what you think about this idea!
I would love to hear your feedback.
cheers,
Ares
The theory and technicals, which led to our entry at ~$17, are explained in the previous idea i shared with you guys (linked below).
The price respected the trendline (black) three times during this uptrend. We saw a retracement in the shape of a cup each time,
followed by another breakout. The same thing happend before, while the price was moving in a parallel ascending channel (red).
For whatever reason, the price pumped 57.17% each time.
So we can say that the price of GME tends to move in some sort of patterns.
Let's try to apply these patterns to the current situation and find the best possible entry for those who missed to pump or for those
want to increase their position size.
From a technical point of view, we would like to see the price re-testing the trendline. This usually happens during a pullback.
Pullbacks occure after a strong breakout. Those who previously bought (f.e. in the past months) take their profit and new traders emerge on the market - the journey continues.
We can see a new trend emerging, which might be moving more aggressive. Please be aware that during an actual short-squeeze, we see insane price-jumps and huge sell-off later.
Please manage your risk accordingly.
Let me know what you think about this idea!
I would love to hear your feedback.
cheers,
Ares
Note
Previous Idea for GME![[WSB] How to trade the GameStop Short Squeeze!](https://s3.tradingview.com/z/Zd8yDVWi_mid.png)
Note
Useful link (credits: u/ssjdynasty)iborrowdesk.com/report/GME
Note
The price is in the overbought territory. As many times before, we see a short-term retracement kicking in. Please set your buy-orders beforehand
Strategies, Insights & Education: t.me/KOLAcademy
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