/biz/ - Business & Finance

Things have gotten very quiet both here and on Reddit. I actually see this as a good thing. We already know thanks to GameStop reporting DRS numbers that none of us are selling, so that’s not the issue. It’s just that nobody is sitting on the edge of their seat waiting for this to happen tomorrow. The thing is though, when stuff actually happens in the stock market, you never hear about it beforehand, or at least we wouldn’t. Much of the noise around GME is likely driven by traders. Selling calls, shorting, flipping. Bearish options merchants want you to think it’s going up, shorts want you to think it’s going down, but the stock doesn’t really move all that much anymore does it? After a very long period of consolidation, we find ourselves at the apex of a symmetrical triangle measured from the top of the January 2021 candle to the bottom, right smack dap in the middle of “the move.” Volatility is a fraction of what it used to be, and what that means for traders is that there’s no more money to be made here, hence the deafening silence on all fronts. It also, in my mind, means that this long period of consolidation is nearing its end. When you look at this kind of stuff from a technical analysis standpoint, and kn general terms, you look at the chart and say “oh yeah, big move up, but here’s the support? We gotta come down and establish some kind to support before we can move up again.” Well, we just did. This the monthly chart and the purple line is the 50MA. If you look at the line chart, you can clearly see that we tested it three times and bounced, so not only does it appear to be acting as support, but a triple bottom is seen as a reliable bullish indicator in technical analysis. Also note that the 50MA is currently resting right in the center of “the move.”