Last week I was bearish and had a great swing put trade on GME. Now I see stronger reasons (technically speaking) for price to move higher. On the chart:
* Price opened over downtrend line, pulled back and held it as support (seen on regular candles)
* 30m volume is red at the open, but switch to 5m and you see more buying
* Heiken Ashi shows a strong green candle at open and price has stayed in upper half since
* RSI over 50
* Ichimoku Tenken crossed over Kijun
* Bullish MA crossover, 4ema > 10ema > 20sma
Two cautions on 30m chart:
* Price could move lower to bounce of 20sma
* Cloud resistance is overhead (but it is thin)
As I post this, price was consolidating at 44 and just moved lower. Social media is circulating GME talk again. If price closes over daily VWAP (over 46 is better) that gives a stronger indication for price to move up this week.
* Price opened over downtrend line, pulled back and held it as support (seen on regular candles)
* 30m volume is red at the open, but switch to 5m and you see more buying
* Heiken Ashi shows a strong green candle at open and price has stayed in upper half since
* RSI over 50
* Ichimoku Tenken crossed over Kijun
* Bullish MA crossover, 4ema > 10ema > 20sma
Two cautions on 30m chart:
* Price could move lower to bounce of 20sma
* Cloud resistance is overhead (but it is thin)
As I post this, price was consolidating at 44 and just moved lower. Social media is circulating GME talk again. If price closes over daily VWAP (over 46 is better) that gives a stronger indication for price to move up this week.
Trade active:
Volume coming in today. I am wondering if this will gap higher overnight.
Trade closed manually:
I sold my weekly 60 calls at multiple exits in the afternoon (on 24 Feb). Holding weekly options from Monday carries high theta decay risk, and this is mitigated by using little capital to buy only a few contracts. So if GME never got close to or past 60, my real dollar loss would be small. Using less capital helps with unemotional disciplined decision-making and allows for a great reward to risk.