As many of you know I do basket trading – So I closed my basket with GME Gamestop last week with a handsome profit of over 150%. I’m now building up again and looking to buy back into Gamestop but at the moment it’s at completely the wrong place for me.
My feelings are and that’s all this is that fair price is at the bottom of the arrow I’ve drawn. So I feel like the stock price will be drawn back to that level. HOWEVER, there are earnings announcements and that may cause a rally on the 24th March or so, I may take a position before the earnings are announced. But I do feel like that’s a bit of a gamble. I need to see where the MACD and ATR are before making that decision.
This is a great stock from a purely technical view because it is so driven by fundamental news. Normally fundamentals don’t have this much effect on a stock for this long. Normally they settle down into a nice pattern but here it’s just chaos.
One of the reasons I love MACD on the daily chart is it smooths the chaos out. For sure, this stock will fall again and then find more buyers. In the long term, I’m bullish on $GME but I’m not a long term trader, I prefer to trade shorter, 2 to 3 weeks max and basket trading and dollar-cost averaging unless there is a very good reason.
Be First to Comment