GME 10 Consecutive Green Days - Go short or long? Or both?
Price has broken a downtrend that has lasted 3 months, and has been showing 10 consecutive green days recently, breaking several months old resistances and daily 50 and 200 moving averages. GME may be back in play, however it's important to remember the role of bag-holders and relevance of GME.
It has been over a year since the initial pump & dump, and there're still many bag-holders that serve as resistance as shown in the volume, preventing future upward price movement due to selling for a smaller loss or to breakeven and in rare cases for a profit.
Price has been consolidating for a long time due to bag holding and lack of strong catalysts, as seen in the volume compared to the initial pump and dump, though recent volume is comparable to the 3rd rally that reached $344.66, so future price may reach these levels, but it's very unlikely price will go beyond and make new ATHs due to the consequences of FOMO (as seen on the chart) and bag holders looking to sell.
A common pattern seen in many pump & dumps, particularly in penny stocks, is a pattern that resembles an exponential decay graph, with occasional price spikes (rallies) that are weaker than the previous spike - this is due to bag holding creating heavy resistance, so long opportunities (potential short squeezes) are unlikely to be successful. The red zone encompassing the price range from $216 to $483 one should pay more attention for any reversals for shorting opportunities, such as any parabolic shorts, potential circuit breakers killing momentum, or from fake outs from the high levels the 2nd and 3rd rallies made. Make sure to have stop losses as losses when going short is limitless, and have take profits into strength or at any signs of pullbacks or towards or at demand zones.
Going long is riskier as one can be subject to FOMO due to the recent gains made in the past 10 days (+100%), but if one wants to do so, look for breakout entries on the daily or intraday timeframe, or entering when price pulls back into the VWAP or intraday MA or a demand zone, with stop losses below consolidation or the breakout level or below structural lows, taking profit as price heads towards or reaches resistance levels.
Strong reminder that FOMO and poor risk management can lead to huge losses, so one must make sure to use stop losses and risk what they can afford to lose. One can also take multiple attempts if initial entries fail, but one must know when to give up if unsuccessful - as there'll always be more opportunities to make money in the future. The aim of trading is to make money. It's not to be on the "right" side, such as to squeeze out hedge funds with large short positions, so don't get peer pressured into anything.
It has been over a year since the initial pump & dump, and there're still many bag-holders that serve as resistance as shown in the volume, preventing future upward price movement due to selling for a smaller loss or to breakeven and in rare cases for a profit.
Price has been consolidating for a long time due to bag holding and lack of strong catalysts, as seen in the volume compared to the initial pump and dump, though recent volume is comparable to the 3rd rally that reached $344.66, so future price may reach these levels, but it's very unlikely price will go beyond and make new ATHs due to the consequences of FOMO (as seen on the chart) and bag holders looking to sell.
A common pattern seen in many pump & dumps, particularly in penny stocks, is a pattern that resembles an exponential decay graph, with occasional price spikes (rallies) that are weaker than the previous spike - this is due to bag holding creating heavy resistance, so long opportunities (potential short squeezes) are unlikely to be successful. The red zone encompassing the price range from $216 to $483 one should pay more attention for any reversals for shorting opportunities, such as any parabolic shorts, potential circuit breakers killing momentum, or from fake outs from the high levels the 2nd and 3rd rallies made. Make sure to have stop losses as losses when going short is limitless, and have take profits into strength or at any signs of pullbacks or towards or at demand zones.
Going long is riskier as one can be subject to FOMO due to the recent gains made in the past 10 days (+100%), but if one wants to do so, look for breakout entries on the daily or intraday timeframe, or entering when price pulls back into the VWAP or intraday MA or a demand zone, with stop losses below consolidation or the breakout level or below structural lows, taking profit as price heads towards or reaches resistance levels.
Strong reminder that FOMO and poor risk management can lead to huge losses, so one must make sure to use stop losses and risk what they can afford to lose. One can also take multiple attempts if initial entries fail, but one must know when to give up if unsuccessful - as there'll always be more opportunities to make money in the future. The aim of trading is to make money. It's not to be on the "right" side, such as to squeeze out hedge funds with large short positions, so don't get peer pressured into anything.
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