How Might the GameStop 'Saga' End?
Let's let the charts and indicators speak for themselves.
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News reports this week suggest that Keith Gill, the stock influencer also known as "Roaring Kitty," may have sold some of his option positions in GameStop GME while increasing his holdings of the stock.
On June 3 I wrote about GME and concluded that "I am not a fan of meme stocks and how many traders have approached the space. Traders who are long GME from lower levels might consider taking profits in the $42 area."
Traders got the opportunity to sell GME in the $42 area on June 6 and 7. See the chart below.
Let's check one more chart.
In this daily Point and Figure chart of GME, below, I used close-only prices with a percentage move scaling. Yes I was torturing the data to get the answer I wanted but the outcome is interesting. Here the software is suggesting that a decline to the $4.20 area is possible. A close below $24.68 could precipitate further declines.
Do we reach $4? Doesn't matter as any kind of decline in that general area is going to be painful for many longs.
Bottom-line strategy: I have no special knowledge of what might be happening behind the scenes on GME and will let the charts and indicators speak for themselves.
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