short term [CONSOLIDATION] || mid term [BULLISH]

2021年4月7日

TECHNICALS

• Currently consolidating
  
• Volume falling, so looking for a trend reversal soon
  
• Stochastic + MACD indicators showing BULLISH ready almost
  
• Cup and handle pattern forming/formed
  

FUNDAMENTALS

Right now for me is neither a buy nor sell moment. It's a firm HOLD while things move sideways and we see what is what on Friday.
*They've expanded the GME team with additional Amazon + Google people, but that hasn't made a dent in movement just yet.

• Sales have increased by 11% in the first 9 weeks of 2021.
  
• GME also want to use their current evaluation as a leverage to sell off 3.5 million new shares (value of $1 billion). While this seems a lot, my understanding is this isn't going to affect current movement.
  
• Lowest volume since mid-january (which usually is an indicator for big moves, and the way the charts look, that big move is to the upside). Could be looking at a gamma squeeze (not THE squeeze still) this month that boosts beyond January's top of $483.
  
• With current developments, we could see Ryan Cohen - AKA Mr Chewy billionaire - become CEO. This would be a catalyst for skyrocket moves.
  
• We still don't really know the truth behind how shorted this stock is. It could be anywhere between 20% and 900%. What we do believe - as a general concensus - is the stock is definitely over shorted, and the squeeze is still a'coming... timeframe? No idea. Could be a long time based on how much GME consolidated before the January squeeze.
  
  But wont the market crashing also crash GME?
  
  No.
  
  Other securities are likely being used as collateral on leveraged GME positions. As the market melts down and those securities lose value, the GME positions will command further collateral.
  
  As the collateral requirements continue upwards, margin calls will begin going out. When that happens, GME is bought at market prices by the lender to close out the untenable positions, meaning 🚀 for us and while all the other positions used to lever GME are liquidated and continue their meltdown.