GME Stock Analysis: Long and Short-Term Strategies as of October 21, 2024
Long-Term Strategy
The current trend is Bullish, and the recommended long-term investment strategy remains Buy and Hold.
Within a bullish zone, the trend is divided into two phases: the Uptrend, where the stock sees strong upward momentum with occasional dips, and the Correction Trend, where fluctuations occur but are usually followed by upward movements. Investing in a bullish zone generally offers high returns and lower risk.
For medium to long-term investors, staying within the bullish zone suggests a likely upward movement, making it an opportune moment to hold for potential gains. However, it’s important to be aware that once the trend transitions into a Bearish Zone, it signals the time to sell.
There are signs that the trend may soon move into a Bearish Zone, and it may be time to reconsider the current investment strategy.
The Buy and Hold strategy has been maintained for the past 4 days, with a cumulative loss of -2.7% as of today.
Buying Price: $21.3 (October 15, 2024)
Current Price: $20.7 (October 21, 2024)
Difference: -$0.6
Short-Term Strategy
We are currently in a Bullish Zone, though it is expected to shift into a Bearish Zone soon. In this zone, significant upward movement can be expected, so it is advisable to be aggressive with buying at strategic entry points and to sell in phases. This gradual selling allows investors to capitalize on any temporary price rebounds.
Currently, the market is in a Correction Trend with fluctuating prices showing a box pattern, including both slight increases and downward fluctuations. This correction is a pause within an otherwise upward trajectory, where the buying intensity has weakened, and there is an emergence of temporary selling pressure.
Over the next 10 days, the forecast suggests a strong upward direction, with 60% of the movement expected to be upward. The upward intensity is higher, and the downward intensity remains moderate.
Suggested Buy Timing: October 22
Good Price to Buy: $20.2
Suggested Sell Timing: October 24-25
Good Price to Sell: $22.1
10-Day Stock Forecast
GME stock has a 71% correlation with the Russell 2000 Index, indicating that its price often follows the trends of this index. There’s a 29% probability that the stock could move against the broader market trend, but for the most part, it mirrors the market. As a result, any changes in the Russell 2000 Index could impact GME’s price movement.
Predicted Price Range: $20.4 ~ $22.5
Percentage Change: -1.6% ~ +8.6%
Median Price: $21.4 (+3.5%)
Trend Analysis & Volatility Prediction
For the past 30 days, the average Bullish Trend Level has been 7%, with the current level sitting at 16%. Over the next 10 days, the bullish trend level is expected to decrease to 6%, as the possibility of a bearish transition grows.
If the trend moves upward, the upward intensity could reach 62% (maximum 100%).
If the trend moves downward, the downward intensity could be -25% (minimum -100%).
Average Closing Price in Case of Rising:
High Range: +8.3%
Low Range: -1.9%
Average Closing Price in Case of Falling:
High Range: +2.7%
Low Range: -5.6%
Conclusion
The GME stock remains in a Bullish Zone for now, though signs indicate it could transition to a Bearish Zone soon. Long-term investors should maintain their Buy and Hold strategy for now but remain cautious. Short-term investors may find opportunities with a phased selling approach as the market experiences corrections.
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