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Should I hold GME? GME stock is down 80% from all time high

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Should I hold GME?

GME Highlights:

  • Support level 71$-65$ area
  • Breakdown from pennant
  • Gap printed on GME chart near 158$-214$ range

2021 is a year when Wall Street realized the power of united retail traders. Needless to say that this GME mania is costing wall street hedge funds a lot of money. Before we start looking at the charts and all other market data we need to understand that this is not a classic pump and dump move. In a classic pump and dump any one person or a very few people hold a lot of supply of the asset and then try to create and positive sentiment for the stock & lot of people buy the stock together and the big holders dump on them. But in this case, it is not a pump and dump move it is a short squeeze. In my opinion, Melvin Capital, Citron Research, and some other hedge funds are already holding their short position and they are trying to push the price down by doing all sorts of manipulation. Isn’t it illegal? Yeah, it is illegal but in my opinion, those hedge funds have decided already that they will rather go to jail and not lose a billion dollars of their client’s fund. This is the reason I would tell you to stay cautious with GME and other short squeeze stock like AMC, BB, NOK.

The main enemy of retail traders is manipulation and illegal activities that are going on GME stock. Many eToro users reported that the broker automatically closed their positions at loss and also almost every broker in the United States halted GME trading when they started seeing some buying surge. In my opinion, they will continue doing illegal activities on the market just to get out of their position and it will hurt the majority of the retail traders. So I suggest if you are holding GME stay cautious, if you are playing this then play with afford to lose money because if you play with a significant amount of money you will either “make it to the moon” or “go homeless”. This a game where the opponent is a cheater, this decreases the retail trader’s chances of winning.

Before I come to the technical part of this stock I would like to tell you how hedge funds can win this game. All these hedge funds have an enormous amount of money to manipulate social media trends, news, and even your broker.

What they are doing:

1) Blocked Robinhood traders from buying GME, AMC, BB, NOK

2) Halted Trading

3) Several eToro customers reported that their GME positions were closed automatically

4) IG broker completely blocked GME and AMC trading

5) Broadcasted Manipulative news to change the public sentiment

6) Spamming some other stocks on Twitter and Reddit using bot accounts to divert the attention from GME

As I told you earlier this is just the beginning of the manipulation they will do all sorts of manipulation just to close their short position.

Now coming to the technical part of this stock.GME rallied from 4$ to 483$ and right now it is down to 90$. GME chat printed a pennant first then the stock price started to dump as soon as the pennant is broken. We have strong support near 90$ and a gap printed near 158-214$. In my opinion, the stock price should jump one more time to fill the gap near 214$.

Should I hold GME?

If you have invested a huge amount of money I suggest you reduce the risk if the stock price goes up and fill that gap. I don’t see any point of selling here at 90$ area if you are holding from 200$ or above. If you have invested afford to lose money then you are all good. But for those who “YOLOed” into this stock, I definitely suggest you reduce your risk as soon as the stock price goes up again. Trust me you are simply letting them rob you by putting the life-changing amount of money and they are robbing the retail in-front of everyone by doing all sort of manipulation. So as of now, I expect the stock price to go near the 200$ area if the price can break above it we may see 360-375$. If you have invested afford to lose money then hold your position if you have invested a life-changing amount of money then I definitely suggest you reduce your risk.

 

TI9edfzl - The TradeLog

Tyche is an engineering graduate, a full-time trader, and a financial market analyst. Before founding TradeLog, Tyche was a student of Electrical Engineering. He has 6 years+ of experience in trading financial markets.