There are roughly 53,370,000 shares of GME bought quick as of November, based on the web site ShortSqueeze. How a lot of that quick place is held by Icahn I do not know however let’s verify the charts and technical indicators of GME to attempt to see what could set off additional worth weak point.
Studying about Icahn’s early years within the securities enterprise I’ve little doubt he was most likely uncovered to technical evaluation at Dreyfus or Gruntal.
Within the day by day bar chart of GME, beneath, we are able to see a big potential descending triangle formation. The shares present a sample of decrease highs the previous 12 months and a tough sample of equal lows round $25. Costs are near an apex so the timing is correct for a draw back breakout. The buying and selling quantity has been shrinking over the previous 12 months and that’s typical for triangles. Because the excessive/low vary of the value motion will get narrower the chance of earning money is diminished and merchants take their cash elsewhere the place costs are trending.
The On-Stability-Quantity (OBV) line has a slight upward tilt and means that consumers are being extra aggressive. The Transferring Common Convergence Divergence (MACD) oscillator is again to the zero line.
Within the weekly Japanese candlestick chart of GME, beneath, we are able to see a much bigger image of the value motion with decrease highs going again two years. Costs are beneath the declining 40-week transferring common line.
The weekly buying and selling quantity is just too small to see on this scale. The weekly OBV line is flat on this scale. The MACD oscillator is bearish.
On this day by day Level and Determine chart of GME, beneath, we are able to see a possible draw back worth goal within the $22 space.
On this weekly Level and Determine chart of GME, beneath, we are able to see a worth goal of $9.50.
Backside-line technique: None of us are a fly on the wall of Carl Icahn’s places of work so we are able to solely guess about his place and worth goal however I will not be stunned if GME breaks to the draw back. A commerce at $19.24 is more likely to precipitate additional declines.