GME, get ready for landing at 10

2 lug

Overview
GameStop Corporation (NYSE: GME) appears to be in a bearish trend with recent price actions indicating potential further decline. This idea explores a short-selling strategy based on key support and resistance levels identified in the attached chart.

Technical Analysis
Resistance Levels:

$27.78: Major resistance zone, indicating a potential reversal area if the price attempts to rally.
$25.00: Immediate resistance level, critical for short-term bearish sentiment.
Support Levels:

$18.61: Initial support level, a break below this level could accelerate the downtrend.
$13.60: Intermediate support level, likely to see some consolidation or minor bounce.
$9.92: Major support level, a target zone for significant bearish movements.
Current Price Action:

The current price is around $24.07, just below the immediate resistance level of $25.00.
The price has been consolidating with lower highs, indicating weakening bullish momentum and potential for further decline.
Volume Analysis:

The volume pattern shows decreasing buying interest and increasing selling pressure, supporting the bearish outlook.
Trade Setup
Entry: Short entry at or near the current price level ($24.07) or after a retest of the $25.00 resistance level.
Stop Loss: Place a stop loss just above the $25.00 resistance level to limit potential losses.
Target Levels:
Primary target at $18.61
Secondary target at $13.60
Final target at $9.92
Risk Management
Position Sizing: Adjust position size to ensure risk per trade is within acceptable limits, typically 1-2% of the trading account.
Trailing Stop: Consider using a trailing stop to lock in profits as the price moves in favor of the trade.
Conclusion
The technical indicators suggest a continuation of the bearish trend for GameStop (GME). This setup provides a clear strategy for short-selling with defined entry, stop loss, and target levels. Traders should monitor the price action and volume closely to adjust their strategy as needed.