GSX Techedu Technical Analysis: Key Support Tagged

By Gareth Soloway of In the Money Stocks

President & Chief Market Strategist at IntheMoneyStocks • Mar 29, 2021 at 2:25 PM EDT

GSX Techedu technical analysis shows that the $30.00 level is a major support point. This means GSX Techedu should bounce hard. A classic retrace to the daily 200 moving average is likely.

Shares of GSX Techedu (GOTU) flushed last Friday as a hedge fund was forced to liquidate. As a technical trader, I look for rare opportunities like this to accumulate. In other words, I look for situations where the news is not company-specific, but panic/fear cause a massive over-reaction. In the case of GSX Techedu, this seems to be exactly what has happened. The forced liquidation has dropped this stock from $87.00 to a low last Friday of $30.00. In addition, GSX Techedu technical analysis shows that the $30.00 level is a major support point. This means GSX Techedu should bounce hard. A classic retrace to the daily 200 moving average is likely. This brings the swing trade price target to nearly $80.00. Incredibly this is an over 100% move on the stock that is possible.

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