There are so many ways GSX can run for its earnings release. I pretty much copied the pattern it created during the last earnings run as it looks similar to Fridays close. We have a bearish pennant which will take two days to create a small enough wedge for the stock to ascend. The wave is not to scale and will probably be adjusted as the week begins.
What I like...
Great entry spot to short GSX. Set generous stop over the purple line. If muddywaters research is right, then this is the next LK and will retest IPO levels or even go near zero. This is a great entry point to add to short position, if you shorted a bit too early (like me (break even 39,12)). Put spreads seem best to use for this imho.
It needs to hold above the confirmation resistance which is $31.37.
The resistances till target price are;
$32.80
$34.58
$36.35
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Thx
