Like many EV stocks, GME is not bound to any sort of valuation here. It is in la-la land. However, the fact that it has been able to maintain la-la land status in spite of blatant manipulation by brokerages trying to bring it down seems to suggest it might not yet be done. In fact, cnbc reports short interest has not really decreased here and we have not actually seem any firms go belly up. Sounds a bit like bitcoin, doesn't it?
Technically, we have a very aggressive compression going on forming a symmetric triangle. This continuation pattern has a ~~75% chance of breaking out to the direction of the previous trend - in this case, upwards. While I do believe that longer term, this name is going to come crashing down, I simply don't think it is done yet. Frankly, I just don't think the shorts have felt enough pain yet. Remember TSLA?
Some folks have suggested GME sells more stock - this would actually be a great thing for the company as they would get a massive influx of capital. They could shut their brick-and-mortars and turn into a SPAC with this newfound capital, not too dissimilar from AMC's recent raise. And speaking of AMC, it's chart, when scaled, looks almost identical, so I reach the same conclusion there. AAL also raised capital. Is the retail trader going to save these old world companies? We will find out soon, probably next week!
Technically, we have a very aggressive compression going on forming a symmetric triangle. This continuation pattern has a ~~75% chance of breaking out to the direction of the previous trend - in this case, upwards. While I do believe that longer term, this name is going to come crashing down, I simply don't think it is done yet. Frankly, I just don't think the shorts have felt enough pain yet. Remember TSLA?
Some folks have suggested GME sells more stock - this would actually be a great thing for the company as they would get a massive influx of capital. They could shut their brick-and-mortars and turn into a SPAC with this newfound capital, not too dissimilar from AMC's recent raise. And speaking of AMC, it's chart, when scaled, looks almost identical, so I reach the same conclusion there. AAL also raised capital. Is the retail trader going to save these old world companies? We will find out soon, probably next week!