GameStop was looking strong after open. But be wary of the long-term down trending resistance
I've highlighted the long-term downtrending resistance by the light Blue line in the chart below. today the price of GameStop did pass above This level but currently is rejecting the level as it has come back down below it. the day is not over yet so there could possibly still be a breakout or a further rejection. one thing is for sure that people bearish on GameStop or absolutely loading up on some puts here. but on a strong day like this you want to watch for a breakout and watch for building up of a long positions. because this is the the zone where breakouts will happen.
going to charge directly below you can see the candle wick rejection of the line of resistance I mentioned above. by the end of the day this daily candle could look very different so we must be patient if we're thinking about getting into a longer a short position at this resistance level. based on the long-term trend which is down at the moment you would expect a risk to reward ratio to be more appealing on the short side. but we have to be patient and see how the day closes and see how the market reacts at this zone.
here's a closer look at the 4-Hour candles. we obviously broke out of the horizontal resistance level from the range we have been trapped in for a few weeks. this is a bullish notion but that downward trending resistance is where the price is at the moment so we can't jump in Long positions just yet. being patient is one of the most important attributes for a swing trader or day trader.
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Mike Obama : gme is a pawnshop
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Jacob Kitchen Mike Obama: AMC is not as good of a company as GameStop.
Mike Obama Jacob Kitchen: k
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Mike Obama Scottyr1894:
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