SierrasTrades

GME: Huge Price Action Next Week? $43?

Long
SierrasTrades Updated   
NYSE:GME   GameStop Corporation
Hello,

Welcome back to another TA! First and foremost, I eat crayons every day, and none of this is financial or sexual advice. That being said, the MACD , although a lagging indicator tells us a bigger picture of what is to come. First, the further the signal line is below zero, the stronger the signal once the MACD line crosses from below to above the signal line the more bullish . We're mostly going to talk about the daily timeframe but the weekly is also a telling story.

MACD

So, in the past year, starting in
  • March ( RC buy-in) MACD was way below zero and once it crossed above the stronger uptrend we had a ~122% move up.
  • May MACD also way below zero and once it crossed over we saw a 77% move up
  • July MACD had a bullish crossover but we were already above zero so the strength of the uptrend was not as strong 27%
  • Aug MACD was again above zero and the move up was 33%
  • Sept MACD crossed over below zero but didn't move up past zero. This resulted in a mere 11% move up.

This takes us to the start of the week, Nov 14th, where we had a bullish crossover that started below zero and has crossed from below to above zero. This means our uptrend strength should be greater than expected.

RSI ( Relative Strength Index )

The RSI on Nov 9th started below 50 and has since crossed 50 which indicates the stock is bullish . On the weekly, the RSI is curving up to reclaim the 50 line and once we cross over there we'll see some huge uptrend.

Fibonnaci

Fib retracements show that we'll hit $29.99 (0.618) soon. Coupled with what we know about the MACD and RSI we should see at least $32.19 and if the bull trend is strong, we should see (1.618) $43.08

TL;DRS Everything signals bullish with this stock and we should see huge price action which could potentially take us to $43.
Comment:
LOOKING BULLISH HANG IN THERE

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