Per my last longer term SWBI chart (linked below), we are on the back side of a beautiful W. Targets for tomorrows price action are the intersections of the free-hand lines (green and red) with the channel lines (yellow). This one could go either way but is likely to be full of volume to the downside considering the recent 6 month run up in price.
Historically, when the government scares people with anti-gun talk, people buy guns and send speculative values in the stock market on a run. I personally think the fundamentals are different considering EVERYONE just bought 3 guns in 2020, along with all the ammo and reloading supplies the world had to offer. In short, there is no longer a crazy demand and the supply was already beaten down. If anything, the next stimulus gets kiboshed and everyone that bought their first gun in 2020 starts pawning what they have the least use for.
Pawnshops are about to have some badass inventory!
Historically, when the government scares people with anti-gun talk, people buy guns and send speculative values in the stock market on a run. I personally think the fundamentals are different considering EVERYONE just bought 3 guns in 2020, along with all the ammo and reloading supplies the world had to offer. In short, there is no longer a crazy demand and the supply was already beaten down. If anything, the next stimulus gets kiboshed and everyone that bought their first gun in 2020 starts pawning what they have the least use for.
Pawnshops are about to have some badass inventory!
Trade closed: target reached:
That escalated quickly.
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