This huge Bull Pennant for GME is coming to a head in 4 weeks. First major resistance level on the weekly chart is at $231.41. Breaking this level means smooth sailing all the way to $348.50 and also breaking the upper bound of the large wedge. Past that resistance level means clear skies to all time high territory, as well as a definitive breakout of the bull pennant.
Took my entry at $21.00 on 9/7 waiting for the gap fill. Expecting resistance at $26.40 and $31.00. Clearing those levels I'm looking for a retest of ATH.
Buying puts at open for quick sell. Crossing of the stochastic oscillator at around 98% is indicating this short reversal is overbought. Expecting an early morning rejection of the resistance line drawn, but the week long downtrend seems to be reversing.
Bull Thesis -
1) The first thing I noted was the large up-trending channel
2) Currently a Bullish Pennant has formed inside the channel
- My main theory is a breakout of the wedge to the upside.
- I used a bottom fitted curve from the bull pennant "post/mast/flagpole" to give a general trend after the breakout. This is how I arrived at my price target...
