GME Bollinger Squeeze Imminent
GME is consolidating along this $150 level, and I'm expecting to see it make an upside move as it approaches q3 earnings.
Earnings, or their anticipation, have proven to be a strong catalyst for GME before.
Price action has just moved off of a strong zone of support (pink solid line), which led to a 152% rally after it's retest in May.
A measured Fib Time Zone from each squeeze (excluding initial rally) call for a day of significant price action on the 7th of September, coincidentally being *the day prior* to it's next earnings call.
Bollinger bands are tighter than we've seen for GME in over a year, which is typically understood to precede a large upside move.
From Investopedia, "When Bollinger Bands are far apart, volatility is high. When they are close together, it is low. A Squeeze is triggered when volatility reaches a six-month low and is identified when Bollinger Bands reach a six-month minimum distance apart".
Currently GME is meeting all the criteria required for a BB squeeze as it's price action volatility reaches a 12 *and* 6-month low.
Investopedia elaborates, "The next step—deciding which way stocks will go once they break out—is somewhat more challenging. To determine breakout direction, Bollinger suggests that it is necessary to look to other indicators. He suggests using the relative strength index (RSI) along with one or two volume-based indicators such as the intraday intensity index (developed by David Bostian) or the accumulation/distribution index (developed by Larry William)".
Lovely information! To determine breakout direction by the book I added RSI and accumulation/distribution indexes to the chart.
Between the 15th of July and the 4th of August, GME price action made two notable lower lows, the second of which tested the aforementioned 150 solid pink support level.
However between these same two points, RSI made notably higher highs, representing positive divergence, and has continued to climb since.
Investopedia continues, "If there is a positive divergence—that is, if indicators are heading upward while price is heading down or neutral—it is a bullish sign".
Noted! Taking a look at Accumulation/Distribution, we can also see that GME has been distributed down to -11m, a level it hasn't touched since March 5th.
After it reached this level in March, a short re-accumulation of just 0.5m led to a price action rally of 154%.
MacD, not pictured, is tangling along the 0.0 level as it tends to do before significant moves.
Overall the structure of GME has formed a narrowing wedge. Any violation of this wedge to the downside should warrant an IMMEDIATE stop loss on all positions.
Otherwise a fair bullish target pre-earnings could be anywhere between $191 and $343 Fib levels.
Earnings, or their anticipation, have proven to be a strong catalyst for GME before.
Price action has just moved off of a strong zone of support (pink solid line), which led to a 152% rally after it's retest in May.
A measured Fib Time Zone from each squeeze (excluding initial rally) call for a day of significant price action on the 7th of September, coincidentally being *the day prior* to it's next earnings call.
Bollinger bands are tighter than we've seen for GME in over a year, which is typically understood to precede a large upside move.
From Investopedia, "When Bollinger Bands are far apart, volatility is high. When they are close together, it is low. A Squeeze is triggered when volatility reaches a six-month low and is identified when Bollinger Bands reach a six-month minimum distance apart".
Currently GME is meeting all the criteria required for a BB squeeze as it's price action volatility reaches a 12 *and* 6-month low.
Investopedia elaborates, "The next step—deciding which way stocks will go once they break out—is somewhat more challenging. To determine breakout direction, Bollinger suggests that it is necessary to look to other indicators. He suggests using the relative strength index (RSI) along with one or two volume-based indicators such as the intraday intensity index (developed by David Bostian) or the accumulation/distribution index (developed by Larry William)".
Lovely information! To determine breakout direction by the book I added RSI and accumulation/distribution indexes to the chart.
Between the 15th of July and the 4th of August, GME price action made two notable lower lows, the second of which tested the aforementioned 150 solid pink support level.
However between these same two points, RSI made notably higher highs, representing positive divergence, and has continued to climb since.
Investopedia continues, "If there is a positive divergence—that is, if indicators are heading upward while price is heading down or neutral—it is a bullish sign".
Noted! Taking a look at Accumulation/Distribution, we can also see that GME has been distributed down to -11m, a level it hasn't touched since March 5th.
After it reached this level in March, a short re-accumulation of just 0.5m led to a price action rally of 154%.
MacD, not pictured, is tangling along the 0.0 level as it tends to do before significant moves.
Overall the structure of GME has formed a narrowing wedge. Any violation of this wedge to the downside should warrant an IMMEDIATE stop loss on all positions.
Otherwise a fair bullish target pre-earnings could be anywhere between $191 and $343 Fib levels.
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