Boston, MA 09/30/2013 (wallstreetpr) – Glu Mobile Inc. (NASDAQ:GLUU) (Closed: $2.82, Up: 6.42%) opened flat but soon gathered momentum to rally above the range created over the last 6 weeks and close firmly near the previous major swing high of $2.91 made in last July. The price action created a long bullish candle that engulfed the entire range of Thursday. The volume shot up at 5 million, more than double the average of less than 2 million.
The stock had made its debut in just the beginning phase of one of the most violent bear markets in the history and as expected, after a brief period of respite to make a rally to $14.80, it was massacred like all other stocks. The fall from the 2007 top of $14.80 took the form of a Triple Corrective, three correctives punctuated by two small X waves. This pattern looks very similar to an impulsive wave, but the difference comes out when the supposed 3rd wave gets shorter than the 1st, which impossible except a special case, according to the Elliott Wave Theory. This pattern, if correctly interpreted, gives a pattern implication target of 80% retracement. That would give us a long term target of $11.88 but before that, we would have to be convinced about the termination of the pattern. The last corrective frequently turns out to be a Triangle and must be kept an eye for.
Last week, the price broke out of a down trend channel containing the entire price action from the April 2013 low of $2.46 and also above the supply zone in $2.50 – $2.60. The channel gives us a target of $3.70, close to the 2013 top of $3.86. But to reach there, the price must break and sustain above the zone of $2.90 – $3. Investors could accumulate the stock if it manages to stay above this zone.