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.
Agreed with long term view. Short term anything can happen, at times the MACD histogram only lasts a bar or two, might happen here - might not, haha.
CryptoHedging
⋅
@HabitualLineStepper_, yes true since it's a lagging indicator. The cross will be validated or not by the end of the day (technically speaking).
Then we have review things again.
HabitualLineStepper_
⋅
@CryptoHedging, it almost looks like it'll rise if BTC retraces at this point, doing a comparison. Pretty sure it's the same following.
CryptoHedging
⋅
@HabitualLineStepper_, why is that? I don't see a correlation between the 2 - could you explain please?
HabitualLineStepper_
⋅
@CryptoHedging, the GME chart looks a lot like the BTC chart from a month ago but compressed, faster moves on a shorter timeline.
However, if you superimpose the BTC chart over GME in current time, you see that major moves in either asset are inverse to each other, BTC MACD is also crossing - to the upside. It's possible that investors toggle between the two - just a thought, not fact necessarily.
CryptoHedging
⋅
@HabitualLineStepper_, I see you point, there's just one thing: comparing charts should be coming from a fundamental stand point, meaning it's has to be a similar occurrence/context in my opinion.
BTC is a different assets & different context - so you could compare BTC with any other crypto or any other IPO that had huge success (FB, Microsoft, Amazon,....).
for Example: Amazon went down with 90% like 2 or 3 times before blasting of - BTC shows similar patterns.
GME doesn't has this kind of context: this is market manipulation thus creating the short squeeze and can then only be compared with other short squeezes.
But nicely done, and Î don't want to sound as the expert :P , but this has helped me a lot -» viewing the context.
HabitualLineStepper_
⋅
@CryptoHedging, no harm done, it's an idea not fact. I appreciate your view and explanation.