GME Stock Analysis: A trend reversal towards a Bearish zone
Long-term Strategy
The current trend zone for GME remains Bullish, and the recommended long-term strategy in this zone is Buy and Hold.
Understanding the Bullish Zone
In a Bullish zone, the trend can be divided into two parts: the Uptrend, which features strong upward momentum with occasional pullbacks, and the Correction Trend, which includes temporary or limited downward movements amidst general upward fluctuations. This Bullish zone is favorable for high expected returns and a low risk of significant decline.
Outlook for the Bullish Zone
With strong buying pressure, the Bullish zone typically experiences a robust upward trend and milder corrections. From a medium to long-term perspective, if this trend continues, the expectation is for a sustained upward movement, offering the potential for substantial gains.
However, a trend reversal towards a Bearish zone appears increasingly likely, prompting the need to reevaluate the current investment strategy.
Investment Position and Current Performance
The "Buy and Hold" position has been held for 6 days since entering the Bullish zone. During this period, the cumulative loss stands at -3.4% as of today.
Buying Price: $21.3
Current Price: $20.5
Difference: -$0.7
Holding Period: 6 days (October 15 to October 23, 2024)
Short-term Strategy
Although GME remains in a Bullish zone, there is a high likelihood of transitioning to a Bearish zone within the next few days.
How to Approach Short-term Investments
In a Bullish market, strong upward price movements can be anticipated. Thus, adopting an active buying strategy at key entry points is advisable. For selling, taking a gradual and partial approach allows for capitalizing on price fluctuations.
Current Market Conditions
The market is currently experiencing a Correction Trend characterized by downward fluctuations within a box pattern. During this phase, selling pressure has strengthened once again, marking a transition from a weak selling flow to a stronger one.
10-day Trend Movement Prediction
The forecast over the next 10 days suggests a strong downward direction with a 6:4 ratio favoring the downward trend. The downward intensity is expected to be higher, with moderate upward intensity.
Ideal Selling Date: October 24, 2024
Recommended Selling Price: $20.6
Ideal Buying Period: October 29 to October 30, 2024
Recommended Buying Price: $18.6
Correlation with the Russell 2000 Index
GME shows a moderate correlation with the Russell 2000 Index:
Moves in Line with the Index: 70%
Moves Against the Index Trend: 30%
This indicates a reasonable likelihood of GME moving in line with broader market trends, but there remains a chance of it moving counter to the market.
Volatility and Turning Points
The sudden shifts in Buy-Sell intensity introduce high volatility in the market trend. A potential trend reversal is predicted to occur around 6 days from now.
10-day Price Range Prediction
Upper Range: $21.0 (+2.0%)
Lower Range: $18.8 (-8.3%)
Median Price: $19.9 (-3.1%)
Trend Analysis: Current and Expected Levels
Over the past 30 days, the average Bullish trend zone level has been 5%. Currently, it stands at 4%, but it is expected to transition to a Bearish trend with an average level of -31% over the next 10 days.
If the trend moves upward from the current level, it is expected to show an upward intensity of 36% (maximum 100%). Conversely, a downward movement would likely exhibit an intensity of -56% (minimum -100%).
Average Closing Price Prediction
If Rising: Average increase of 4.4%, with a range of 7.6% to -2.3%
If Falling: Average decrease of -3.8%, with a range of 3.1% to -5.4%
This analysis highlights the ongoing trends and provides strategic insights for both long-term and short-term investments in GME.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
