Looking for quick swing to the low 200s after an epic and predictable dump.
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buying range between 50-100$. Its an abnormally large range, but this is an abnormally volatile stock and anything could happen as weak hands ditch combined with epic shorting pressure push this lower before the inevitable rebound
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There are two different forces at play during a short squeeze. The first and most violent one is the real short squeeze (when shorters are forced to close positions by buying back their shares: they push the price higher). With a lack of liquidity or selling pressure, the price makes a very strong initial push which we saw when it reached 450$ or so.
The second force comes from the second wave of shorters. Once many shorters have been squeezed, others, such as myself, and shorters with deep pockets see a weakness in price action and double down. That combined with profit-taking forces a huge correction (which we saw now pushing the price to 90$). Now the new shorts reaching over 70% in profit take their share, resulting in support and an increase in buying. Many traders will buy the oversold conditions, combined with the fact that retail traders are still frenzying over this stock will most likely push it back around 150-200$.
hmm could be and I hope for everyone so you can still get out without losing to much.
Other scenario:
ltserge
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when do you think the second wave up is going to happen? like this week next week? thank you nice analysis
MysteriousPersian
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@ltserge, could happen anytime in the next 2 to 3 weeks. patience is key. Make sure you can remain solvent for that time if on margin and having cash on the side to avg down here is key
ltserge
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@MysteriousPersian, are you pretty confident that the second move up will happen?, like from your experience?
ltserge
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@MysteriousPersian, also do you think its gonna form a resistance lvl like around 50? before it shoots up? how long do you think it could hold the resistance?
So, the squeeze is still in play?
Whoa, maybe time to dip back
Thanks
MysteriousPersian
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@MrKeyster, see my comment above. Hope that helps a bit
Patl66
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Hi MP. What do you think of AMC?
MysteriousPersian
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@Patl66, AMC is following closely in GME's footsteps. If GME make a rebound, so will the other stocks squeezing around right now (AMC, KOSS, NOK, BB, etc.)
Other scenario: