DISCLAIMER: This is not financial advice, and my wife's boyfriend is not a financial advisor. Credit for TA at the bottom of the post
We are at a critical point for AMC; either we make it or don't. I have the utmost faith in the community and in all the shareholders that we are going to be able to hold and not succumb to the pressures of major financial entities. I, for one, will not be selling. I have waited 6 months and invested thousands of dollars into an idea and cause that I believe. It is a total success or complete failure for me. I am not saying that it needs to be that way for you, but we can only win this together. I have been reading a lot of varying opinions on the future of AMC stock. From a technical standpoint, we have reached the top. However, if we can develop a strong uptrend, we can win. I just wanna be that guy getting his knob slobbed in the handicap stall in a Wendy's bathroom for once in my miserable cuck life.
We are at a major determining point for AMC First, let's look at the Daily (left side): We hit an RSI of around 96 the second time and are highly oversold. The first time it markets a temporary Top! Normally a stock moves in Waves. We detached from the MAs and are likely to return to the 50 EMA earlier or later. Volume Analyses also show signs of excessive bullish volume we normally see on overshooting tops.
Let's look at a shorter time frame now (4h – right side): We see a weakening RSI. The Trend has not broken down so far, and the 9 ema is still holding. I suggest at least set a stop or Trailing stop below here. The VolumeAnalyses is showing sell signs (red triangle down) In case of a pullback, the first "Volume support" is around 15, marking the top of the prior re-accumulation phase. A backtest of the "last point of support" is normally needed to confirm the bias and regain strength for the next move. The bullish scenario would be a pullback on low volume that is holding the support zones.
However, Exploring Gann fans. AMC has been respecting the 1:2 and trading in that channel. If the Current low respects the 1:1 trend line, then there's room for a move from 45 to 216 in one day. Not that it will, but that's the "reasonable" limit. If it significantly breaks the 1:1, well, then the fun's over, I suppose.
Note: Gann Fan is built using the lows from the 24th and 27th; the connection to the close on Friday is a coincidence.
Volatility plays a major part in this. We have both signals of up and down. It is a major decision time for AMC. AMC has had a powerful run all last week. It is currently trading in a bull flag pattern and is at a crucial point at the bottom of the triangle. If it fails this support, we can expect the price to drop down to the yellow S/R line shown or the 55EMA. Covid-19 is slowly becoming less of a major topic, and movie theaters are beginning to pick up in sales, so I wouldn't be surprised if this continues to grow. I'm not 100% sure, though, but if it bounces successfully, we can expect a battle at the top of the triangle before breaking through to retest the previous high. Let's see. If entering a trade, don't forget to use a stop loss. Don't trade with what you're not willing to lose.
TLDR: HOLD AMC
Thank you for the in-depth technical analysis from tradingview users AlexWe1992, Overexposedphottoofadress, and rnaofs
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