GME: Stonks only go up!!!

Within the last 7 days we've seen some very interesting price action on the GME chart which visually showcases how accurate technical analysis can be and how much reward is actually possible using the right kind of strategies.

For anyone who doesn't know, GME became popular during the 2021 bull run as a result of a massive short squeeze orchestrated by retail investors on platforms like Reddit, particularly within the r/WallStreetBets community. This unprecedented event pitted individual traders against large hedge funds, leading to significant volatility and widespread media coverage.

Now, Roaring Kitty returned after a three-year break from social media, armed with a fresh wave of memes that have caused retail interest in a handful of stocks, including GameStop.

Initial Run

The initial run formed after a few consecutive lower highs in the 5m chart within just a couple of hours. If we now look at the last upcandle before a big downmove we can identify the breaker marked in white.

After an initial move back to the breaker and a return to a gap created shortly before, the price came right back and dipped below the SSL just below the initial drop.

The reason you're not seeing the rest of the price action is that GME gapped MASSIVELY to the upside, which is shown in the chart below ⬇️

The total move after that drop below the sellside (not counting the move above the Breaker) is +279% in just about 3 days, which may constitude a comeback of GME as the leader of Stonks!

Now let's look at the price action after that big rally and analyze the stock properly!

If you'll look that last move down before the massive Gap to the upside you'll notice an OB which can be extended using the Rectangle Drawing Tool. 

Also of importance is the fact, that the gap, as it's a pretty big one and a lot of orders did not get triggered, is likely to be filled with priceaction triggering those orders before moving higher. This is something you should always be aware of when seeing such movements in the markets, don't FOMO and stick to your trading plan. 

It beautifully respected it, did not move below the 50% level and went right back to moving upwards.

As you may notice, I drew a Fibonacci from the high to the low of the recent price action. Why didn't I use the absolute top candle for the Fib? It's not "stable" enough! Look at the candles. All of them gapped before you can notice reasonably fluent/normal pricemovement. I never use such candles or spikes for technical analysis. There are some rare instances where it can make sense to do so, but this comes with experience and advanced techniques. So let's focus on easier things for now.

The 0.382 and 0.618 Fib always represent Targets 1 and 2 when using the Fib. The Rebounds 1.27 and 1.618 are the cherry on top 🍒 ⬇️

Target 1 was already reached and Target 2 and the Rebounds are still untouched. 

There's also Internal Range Liquidity between Target 2 and the Rebounds, which is very likely to be touched. Also check the Gap where Target 2 resides in. As I said, Gaps are likely to be closed in the future ;)

That being said. I'd be careful at the moment in the sense that I'd not go in with a full position not knowing what kind of comeback Roaring Kitty has planned, because he'll likely play a very important role in the Stonks community, which makes this stock kind of hard to predict.

If I had GME stock, I'd see it as pocket money and HODL to be along for the ride, maybe trade some small positions. That can definitely change one we know more about the situation and got some "normal" priceaction.

But keep in mind: STONKS ONLY GO UP!!! 🚀