GME forming a cup and handle

2021年5月17日

It looks to me as if we are forming a base after downtrend since match 10th lost steam. I expect a trend reversal over the next few weeks and a retest of the level at 280.

This is commonly referred to as a "Cup and handle" pattern. It's a very strong and very reliable bullish pattern.

The underlying psychology is bulls running into a resistance, they retreat to form a base. Meanwhile the bears try to shake out paper hands, forming a slowing downtrend. At the base we have a stalement between bears and bulls, until the bears realise they now only face diamond handed bulls, leading to a retreat of the bears, a retest of the resistance and the eventual break, followed by the continuation of the initial uptrend.

Trade idea: GME long stocks.

Stop loss: if GME breaks 116 to the downside, I consider this prediction to have failed.

Take profit: If you are just trading the technicals, the handle will likely begin at 260 to 280. If you believe in GME, buy and hold.

2021年5月26日

註釋

Two weeks on, I feel like this has aged quite well. The rise actually came in much quicker than I expected. As mentioned I expected another week or so of stagnation until we move upwards.

Now I would have to expect to reach the short term top at 260 to 280 within the next week or two.

2021年6月17日

交易結束：目標達成

I was slightly off with the numbers, and the timing was quicker than I've expected, but overall, I consider this idea to have been successful