Hey guys, a very warm welcome to my blog once more and I absolutely take this opportunity to explain what's going under the stock called GAMESTOP. Yes! Guys, the latest sensation of wall street.
My first question is, Do you think that the retail investors are more powerful to move market without the help of market makers and hedge funders. If you think so, then I feel so pity for you. You should know more information about market-making and how larger hedge funds use the media to leverage their market movements.
I will show you some of the technical data that the stock price had undergone for the past 5 year. Yes, what I am going to say to you now is an absolutely contrary story to what you are thinking now.
This is a weekly chart of GameStop.
So If you take a look at the above chart you can find two signals that will be alerting you for the clear up movement.
Signal 1: Head and shoulders in Weekly chart.
Signal 2: RSI divergence happened at the two lows at $3.
All technical analysist can easily say that there have been a big consolidation done in the range of $3 to $6 from the date of Jun 2019 to Aug 2020.
But the fact is the hedge funders who bought at the real low need some good amount of buyer at the top. So the next thing is, they have to invite the buyer to the party.
Elon's tweet acted a very important role in the campaign.
So the moment the stock reaches the resistance the big hedge funders released the roumers around the internet and invited the big crowd of buyers. Luckily the campaign ended so well and started attracting more bulls into the market. Now its high time to dispose the stocks that they have in the repository.
I am delighted to see some retail investors had made some good money here in this campaign in the big players' shadow. So it's always a better choice to trade the insiders information very wisely. I always suggest you to understand the big players move and then react wisely.
If you want to know more about this movement you can watch this video which i have posted in the youtube channel.
Thanks For Reading.
#gamestop #gamestopbuying #melvincapital