Gamestop near double support. We have a triangle at the top. According to classical technical analysis, such a triangle can be both a trend continuation model and a reversal model ... Moreover, this triangle must be broken up or down no later than 3/4 of its beginning to its top, in other words, no later than November 1, 2021 ...
Otherwise, the model is considered unfulfilled (rotten), which means the price has entered a sideways trend.
At the same time, inside this triangle, we see three downward movements, each of which lasted exactly 56 days. The first two movements gave approximately the same -42-45%, but the last third gave only -17.34%.
The foregoing suggests two opposite thoughts to each other:
1. Sign of bullish strength. The bearish downtrend is losing strength and the GME is ready to start an upward movement, bouncing off the support lines. In this case, we have the right to hope for a profit from a long position at least + 25% by December 01-06, 2021 - until the triangle resistance.
As much as possible, we can expect the breakout of the resistance of this triangle and the continuation of the uptrend to the vertical size of the triangle = $ 397.
2. Sign of bearish strength. The triangle is preparing to become a reversal pattern and shed the price strongly down - to $ 65-55 per share (about -65%) just to the level of 2007, 2013 and 2021.
I expect more bearish downtrend than bullish uptrend ...
But at the same time, I have already placed orders in both directions with short stops and pyramiding on corrections towards the developing movement. In both cases, I look forward to making a profit. But only prolonged sideways movement with strong volatility can cause losses.
Not a financial recommendation. Not advice.
Otherwise, the model is considered unfulfilled (rotten), which means the price has entered a sideways trend.
At the same time, inside this triangle, we see three downward movements, each of which lasted exactly 56 days. The first two movements gave approximately the same -42-45%, but the last third gave only -17.34%.
The foregoing suggests two opposite thoughts to each other:
1. Sign of bullish strength. The bearish downtrend is losing strength and the GME is ready to start an upward movement, bouncing off the support lines. In this case, we have the right to hope for a profit from a long position at least + 25% by December 01-06, 2021 - until the triangle resistance.
As much as possible, we can expect the breakout of the resistance of this triangle and the continuation of the uptrend to the vertical size of the triangle = $ 397.
2. Sign of bearish strength. The triangle is preparing to become a reversal pattern and shed the price strongly down - to $ 65-55 per share (about -65%) just to the level of 2007, 2013 and 2021.
I expect more bearish downtrend than bullish uptrend ...
But at the same time, I have already placed orders in both directions with short stops and pyramiding on corrections towards the developing movement. In both cases, I look forward to making a profit. But only prolonged sideways movement with strong volatility can cause losses.
Not a financial recommendation. Not advice.
