Intro
Welcome, and I hope everyone is fresh for a new day of holding because things seem to be getting interesting now. My take on this DD is a bit different to my usual format as I've decided to focus on the Technical analysis side of GME this time around. Why? Because you apes couldn't contemplate words so now I'm using colourful crayons and pictures instead. As always, I've inserted a TLDR for the autists but I do recommend reading it since it'll also help grow your knowledge of TA.
Pivot Point
The pivot point, support and resistance calculations are widely accepted as the simplest yet most effective trading strategy. They are well trusted by traders, banks and all financial institutions as clear indicators of the strength or weakness of the market. They are used as the basis for most technical analysis. The pivot point is the point in which the market sentiment changes from bearish to bullish.
For example, let's look at the candlestick chart for a ticker that I took from tradingview,
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R1 = (2 x Pivot Point) – Daily Low
R2 = Pivot Point + (Daily High – Daily Low)
S1 = (2 x Pivot Point) – Daily High
S2 = Pivot Point – (Daily High – Daily Low)
R3 = Daily High + 2 x (Pivot Point – Daily Low)
S3 = Daily Low – 2 x (Daily High – Pivot Point)
LINKING BACK TO GME
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Pivot Point Data were taken from Investing.com
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GME-
Resistance Line 1: $195.13
Resistance Line 2: 202.33
Resistance Line 3: 215.87
While writing this post $GME was hovering around $217 in pre-market (Which is higher than the current R3 value), all though the value is bound to change before the market opens, if $215 can be maintained during the opening; that will ultimately see Resistance Level 3 becoming the new support line. This would depict a very strong bullish trend that can be aided by the RSI (Relative strength index)
You can ignore the Fibonacci, camarilla etc PP if you're new to TA but they basically show the same trend of the ticker having an uptrend.
Relative Strength Index
The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100
RSI below 30: Oversold, will rebound and may show divergence
Above 70: Overbought
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GME RSI between march 4th and 8th
Current GME RSI value: 68 (Neutral)
The data shows RSI value continuing in an uptrend (bullish) and is in line with the price of $GME as no divergence could be seen. Coupling it with the pivot points, if the same trend continues today and tomorrow we'll see a breakout and support lines forming around $215+
Disclaimer: My predictions are just me speculating and do not necessarily mean they are right. The increased volatility with low float means the price could go in any directions. But the indicators seem to be showing a healthy direction for a bullish market.
Now comparing this to the RSI before January squeeze:
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RSI Value: 72.14
As seen from the second image, RSI trend before the breakout was in an uptrend. However, the slope was not as steep as we're currently seeing right now and when the price re