$GME; The GOLDEN Cross — Jackie Le' Tits — Video Wiki
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Full transcript (2,538 words) — every glorious word
0:02hello everyone it's Jackie back for another GameStop update so today I want to do something a little bit different uh I wanted to focus on something that's happening on the chart uh that has historical significance with regards to GameStop so when we look at GameStop's daily time frame okay we're only going to be looking at two moving averages today we're going to be looking at the 200 period in yellow and we're going to be looking at the 50 period in blue okay those are both simple moving averages all right when we zoom in on GameStop's current price action okay you'll see that there is a cross between the blue and the yellow that is what's referred to as a golden cross that is referred to as a golden cross okay now a golden cross is typically a very very very bullish signal because what that signals to you is that the midterm Price Right the price over the last 50 candles is now above price over the last 200 candles so what that's telling you is that price in the mid to short term is now above the average price of the long term which is generally very bullish it speaks to the center sentiment and the positivity that's happening on the stock in the most recent of times okay so because we have that on the chart right and being that this is one of the most important daily moving average crosses that you can have on the chart okay I've gone through and I've highlighted all of the times that it has happened on GameStop stock both the daily Golden Cross and the daily death cross now the death cross is when the the 50 period moving average crosses underneath the 200 period moving average and again this just signals the opposite of what we just talked about it means prices in the shortterm and the midterm are going underneath the long-term price average so it's signaling that price to us in the short to midterm is not as hot as it once was over the last longer period of time AKA 200200 candles right so now that we understand that let's look back at all of the times that this has happened both bullish and bearish on gme's chart now I've have color coordinated them for a specific reason and I will
2:36explain them as we go through but orange and red are the death crosses and green and this funny shade of blue are going to be golden crosses okay so this first golden cross that I labeled is actually supposed to be a blue one but that's fine so this first golden cross all right that happened when Gamestop had uh shortly after IPO I say shortly it was basically it was a full entire year now the reason that I highlighted this particular Golden Cross here all right with a blue shade is to tell us when that cross is not as strong as it possibly could be and what I mean by that is we have our 50 period moving average slopes upwards right but our 200 period moving average is sloping down when that when that is taking place one moving average is sloping up the other is sloping down it is not the strongest of golden crosses okay but here's a really big important tip okay here's a really big important tip with regards to GameStop or any moving averages that you guys will ever trade or use when you have these crosses both bullish and bearish price loves to come back and test those crosses boy does it like to test those crosses whether it's the 50 or the 200 it loves to test those moving averages after they make those crosses and you can see when this one crossed price was sitting there and tested it for a couple of days before making a nice healthy explosive move to the upside right and then we look over at this death cross that took place here and here's a funny thing to note right so this death cross took place and one of the moving averages was still sloping upwards or 200 so that's why I've labeled this with orange and you can see when that death cross had uh occurred price was underneath it right so what does it like to do it loves to test those moving averages so first it tested the 50 period And it managed to hold and get back above that then it tested the 200 period and it broke above that then you had a golden cross and that Golden Cross was actually not tested until a few weeks later right so even though we had a really
4:47really really positive cross right this was never tested and even when we had this negative cross that test did not immediately occur right it took time for these things to test and develop now with regards to this cross both of our moving averages at that period in time were sloping upwards when that cross happened even though price was well above both those moving averages because both of them were sloping upwards that was really positive and price didn't necessarily need to test it in this moment but as you can see price then found the 50 period moving average it failed and then it tested the 200 and it accepted that it accepted this Golden Cross and then it found its way back above the 50 test test come back one more time and then boom huge move right so from this Golden Cross from this very Golden Cross right here GameStop managed to make geez look at this I mean this is crazy right from that Golden Cross GameStop never had another golden or death death cross right and it managed to go up 669 in the span of 4 years that's huge right that is absolutely huge so that Golden Cross where both of those moving averages were sloping upwards very very very very positive thing to have happen right so the reason that I wanted to share all of these crosses with you was to share all of the different times that these golden and death crosses have happened and you can see that there are a lot of statistical probabilities and very clear things that take place when these crosses happen specifically when they're really bullish or really bearish crosses I.E both of your moving averages may be sloping down or both of them may be sloping up depending on what you're looking for right so we look at all the information here right we kind of had a shitty death cross here but this death cross here led to this double top and then it just led to a a destruction in price right so from this death cross here to the low that was made gme went down 66% and you can just you guys can see for yourselves right every single time one of these crosses happens price makes big moves sometimes it takes a little bit for that big
7:19move to develop but like look at this Golden Cross that occurred right that's not an insignificant move 40% right and then look at this death cross that occurs right 35% to the downside right so the reason that I wanted to share this with you guys was just so that you can understand my perspective when I discuss these golden and death crosses okay so now I want to bring you to the most recent bit of price action and let's turn the drawings off here so first and foremost we have a golden cross now two things are really interesting to me first of all the 200 period moving average is basically flat it is not really sloping up it's not really sloping down it is borderline flat which speaks to long-term price averages right being around the $540 mark over the last 200 days and that is held with relative consistency now it hasn't and we know that and that is because of GameStop's insane volatility but all we need to know is that price over the last 200 candles has begun to stabilize that's what that moving average sloping flat tells us and then we have the 50 period moving average right which looks like it's trying to get into a bar fight this thing's ready to break up and break out look at the size and look at the slope and the angle at which this thing is moving and breaking up this is a very very healthy death Cross or excuse me a very very healthy Golden Cross and with regards to these golden crosses right you remember that Jackie was talking about how they like to be tested but when they are typically bullish right when you see both of those moving averages pointing in the direction that you want to see price doesn't necessarily need to test them right it just needed that cross to occur to confirm that the trend looks relatively positive right so we obviously got the new in the after hours right about GameStops dilution being complete and then the thing made a monster move right and that is fantastic now because at this stage right we're kind of left with just a few simple options right we have all of these Gap fills up above that's what these gray boxes are here okay the gray boxes are
9:48Gap fills above and all you need to know is quite simple either GameStop is going to begin breaking out to the upside side after this Golden Cross and it will become incredibly bullish and price will make a large large breakout move towards the top trying to reach every single one of these Gap fills North and the other side of it is if GameStop fails to make a big breakout for those Gap fills to the upside it will come back down and it will test that Golden Cross and then if it tests that Golden Cross we want to see it consolidate as that cross cost remains held as long as that blue holds above the yellow right our 50 holds above the 200 if that manages to hold there and price does come down and test it that it's like a Launchpad that's what happens it's typically like a Launchpad now you guys will go back right now after watching this video you guys will go back and you will look at some of the most recent examples with gametop right so this example right here pretty simple for you guys to see right 200 is sloping down down the 50 is sloping up yes price did come and test it after the cross had occurred up here right cross occurred when price was up here it reverted to the mean tested those moving averages the first test it did manage to hold that was a great move but then price came back got under the 50 rejected it as resistance came back tested this as support until it broke through and then tested as resistance and its final test of resistance sent this thing down and it was not not a bullish Golden Cross it was semi bullish but one of your moving averages your long-term one was not sloping up it wasn't even flat it was going down so that was a shitty one and then the most the other uh most recent one that we've had post sneeze is this one right here and it's the exact same thing you guys 200 period sloping down 50 sloping up price comes and tests it it fails underneath the 50 fails underneath the 200 and when it fails both of those moving averages it's see you later and then you get the death cross right
12:02your death cross forms right here and what happens with this death cross both of them are sloping down and what happens right what happens price comes and tests that death cross right here it tests it here fails that test it here rejects see you later and look at what happens to gme share price right look at what happens to this thing right it goes straight down straight down right straight down 56% from that final test of the 200 after that very bearish death cross same thing with this one here gme's 200 period moving average has basically been sloping down since all the way back here in December of 2021 and for the first time right we finally have a little piece of positivity a 200 period moving average that is not just sloping down but is finally flat and this Golden Cross could be the golden cross that propels GameStop into absolutely explosive highs and the reason I say that is because it is eerily reminiscent of the most recent one that we had during the squeeze or excuse me the sneeze your 200 period moving average was borderline flat slightly sloping up but borderline flat your 50 period moving average was exploding upwards as that Golden Cross happened yes price came down but it never tested it in fact it did not test this Golden Cross until all the way over here months later months later and every test of that 50 period moving average led to explosive moves I.E confirming your Trend right confirming your Trend that's what we did the want you guys to see right how these golden crosses form and why you see super stink posting about them and they don't understand when they're bullish or when they're bearish and now you haven't heard a peep out of anybody talking about this most recent one currently happening it has happened you've gone through that is a golden cross and it is a bullish Golden Cross because both of your moving averages if they're not sloping flat or sideways they are slop upwards so those are the scenarios going forward right either gme begins to break up and out filling all these gaps towards the the top side and we begin explosive price moves or Price fails at these levels and comes back and tests that Golden Cross and that would
14:48be equally as bullish right so this is why like you know I I just don't have any fear at this point with GameStop to me there are so many bullish indications telling us that yes something big and something explosive is coming it is now our job to just simply read the technicals read the charts and just read what they tell us and everything on this chart is telling us that it wants to go that's that's just what it's telling us so hopefully you guys have found this informative all right hopefully you guys found this useful I look forward to uh seeing you guys tomorrow we'll have a little bit of a lime stream tomorrow and uh yeah that's it so guys thank you for listening thank you for watching and uh Jackie out