Someone asked me to look at GME as a long term Bullish opportunity.
I looked at the Weekly chart and needed to go no further.
I don't like the way the GME weekly chart looks for a bullish case - yet.
I see a huge congestion or TPO area in the Yellow box.
The POC blue horizontal line is violated in Dec 2016 and showing some support, but the momentum pattern is unbalanced and downtrend is still unbroken.
High probability to explore the lower side of that Yellow box with a balanced move into the 2nd Blue box.
I see 2 matching momentum moves in Green boxes at the same degree.
I'll call it ABC.
And a strong momentum move in Smaller degree in Blue. It is not the same degree as the declines above it. It is about half the momentum. That's my Elliott interpretation.
That Blue box move labeled wave "a" is unmatched and should be in at least 1
repetition of the same degree into the right most Blue box.
There is the bottom of the congestion Value area at 16.55, and then
confluence levels at 14.33 and 9.63 as shown.
I personally would not want to touch it long until I saw some
balance to the pattern and divergence in the Oscillator.
There is no weekly major divergence across the lows yet
and no balance in the Blue boxes.
I'm probably deaad wrong if GME starts closing above the 29.12 POC.
In which case that level should be a good level to establish a support long trade.
But as of now, don't fight the trend - which is Down with both price and oscillators making lower lows and lower highs stepping down.
I looked at the Weekly chart and needed to go no further.
I don't like the way the GME weekly chart looks for a bullish case - yet.
I see a huge congestion or TPO area in the Yellow box.
The POC blue horizontal line is violated in Dec 2016 and showing some support, but the momentum pattern is unbalanced and downtrend is still unbroken.
High probability to explore the lower side of that Yellow box with a balanced move into the 2nd Blue box.
I see 2 matching momentum moves in Green boxes at the same degree.
I'll call it ABC.
And a strong momentum move in Smaller degree in Blue. It is not the same degree as the declines above it. It is about half the momentum. That's my Elliott interpretation.
That Blue box move labeled wave "a" is unmatched and should be in at least 1
repetition of the same degree into the right most Blue box.
There is the bottom of the congestion Value area at 16.55, and then
confluence levels at 14.33 and 9.63 as shown.
I personally would not want to touch it long until I saw some
balance to the pattern and divergence in the Oscillator.
There is no weekly major divergence across the lows yet
and no balance in the Blue boxes.
I'm probably deaad wrong if GME starts closing above the 29.12 POC.
In which case that level should be a good level to establish a support long trade.
But as of now, don't fight the trend - which is Down with both price and oscillators making lower lows and lower highs stepping down.