GME was trading below its MA20 for a while indicating a downtrend but it seems to be reversing. RSI is close to 30 and it seems to have bottomed out at $129 for now. Is this a reversal? I posted this in the discord earlier, and no one saw it lol, so want to seek feedback for this. Am I missing something?
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So the current talk around GME is rather or not it will do an anniversary run. Im going to ignore the TA piece - as really the only things that matter here are resistance levels. Im looking at a $140 support which it seems to be holding above. You could theoretically chart a sharp wedge on the one year that would be coming to a point here but wedges havnt really worked (personally for me) with meme stocks in the past.
The other hand is that retail sentiment is picking back up. With the NFT platform being released and the year anniversary coming up - these meme tickers (AMC / GME) have a chance of riding some upwards momentum and this is a theoretical catalyst that you can profit off of.
I wouldn’t be surprised to see GME in the 150s again soon - rather or not it pushed back past that simply reliant on how retail acts in the upcoming weeks. This is something I will be keeping a close eye on - timing it will be extremely hard.
If you want to take this a step further @wasabiEatingMoonMan take a look at the options chain and see if there is any atypical OI on strikes that could become ITM if retail were to push the stock price high enough.
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I did a quick OI search for each week up through 01/28 and didn’t really see anything crazy except for the 950c for 01/21, which has 44k OI. The highest strikes aside from that ranged from 2-4k and there weren’t that many.
The float for GME excluding institutionally held shares is over 55M. The 44k on the 950c only accounts for 4.4M, and let’s get real, retail isn’t pushing this stock to $950 when the entry price is $140+ right now.
Someone feel free to correct me if I’m off base, but this doesn’t look like a possible gamma play that starts to ramp up because of retail.
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Yeah I wasn’t looking at it for a gamma play, and based on what you’ve said and I said in the discord after meltedcrayon’s reply, I agree that it’s not a squeeze candidate. It looked like a TA-reversal to me.