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GMS Inc. $GMS - Pulling Back after a Bullish Reversal Breakout

At the start of July, we saw GMS Inc. $GMC breakout of a diamond pattern, signaling a bullish reversal.

GMS Inc. $GMS in a Bullish Breakout from a Diamond Pattern While Q4 Earnings Disappoint

GMS Daily Chart

(click to enlarge)

Bullish Breakout and Pullback:
- As we can see on the daily chart, price extended higher to $23 after breaking the diamond pattern. 
- This rally made a new high on the year and officially completed a price bottom.
- If price pulls back, the $20-$21 area would be the first potential area for support. 
- I wouldn't like to see price pull back under $19, but only a break below $17 would convince me that bears are back in control.
- Also, the RSI should hold above 40 in the bullish outlook, so if it approaches 40, we should anticipate support.
- A hold above $20 would maintain the bullish outlook to the $26-$28 area - a bullish reversal scenario.

I am preparing dry buy around $21 and $19. 

GMS Weekly Chart

(click to enlarge)

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