This chart is basically saying that the price of the GameStop stock is still accumulating with decreasing volume on the NYSE. We see the price reacting to either the Support ($140.00) or the Resistance ($190.00). From a technical perspective, there is no advantage in trading within the pattern. You will have a great Risk/Reward ratio after the price breaking out of the structure.
There are (obviously) two possible scenarios. The current sentiment is pointing towards a bullish scenario, which can be confirmed be looking at the MACD (Moving Average Convergence/Divergence) and the RSI (Relative Strength Index). The average price is increasing while the price is going in a sideways movement. In this case, we see buyers being active on the market without being able to spot it in the first sight.
For a proper breakout of the horizontal channel, we want to see increasing volume and a strong reaction at the support/resistance. This is my personal confirmation for loading more stocks. If the price moves past the $140.00 level, I will look for a lower entry around the $100 level.
Feel free to check out my previous GME analysis as well
But isn't avg price increase and decreasing volume divergence more bearish signal?
rbianco1968
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One question for anyone thinking of selling shares for a profit.
How many Apple fan boys were there giving Apple investment funds and word of mouth advertisement? A few but nowhere near Game Stop
This company will be the biggest, most powerful in the world. I want to control it not sell for dollars.
FRANCE2018
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if GME close above 200USD it will confirm the bullish trend to about 265USD then 320USD then to the moon ?
FRANCE2018
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@FRANCE2018, what is the closing price that will confirm
the bullish trend ?
rbianco1968
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@FRANCE2018, $200, $300, $400 yawn. $50 million a share, that will come after GME is competitor to Amazon.