I apologize in advance for not confirming anyone's bias – if that's what you are looking for stop reading now.
Some of you might know me from my previous AMC/GME analysis where I detailed the setup for the most recent runs:
I've been getting a lot of requests for this, and seen a ton of completely false technical analysis for these names, so I figured I would clear the air and provide an unbiased roadmap from someone with no position.
Remember, DD with no position is analysis – DD with a position is marketing.
Let's dig into the charts –
Starting with $GME, let's break it down color by color:
Ascending triangle coming from upside. These are more likely to have a bullish outcome. However, this is on a longer timeframe. It would break up above 344 and targets 400 –> 450 –> 500. You would want a daily close to seal the deal. This setup breaks down and is invalid below 163, from there – no support until 145.
Descending channel coming from downside. This are bearish in nature. It means the near term trend is down and likely to stay that way unless we break above the upper boundary with a daily close. In this case, you would need a break above 209, which would target 241.26, 274.29, 291.30 – and maybe the top of the pattern at 344. Until then, it is sell the rip short term.
When a pattern breaks against it's bias – the resulting move is often less pronounced and I look for about half the move I would look for if it broke with it's bias. That's why in this scenario, if we broke above, you would want to see it form a bull flag, falling wedge, or ascending triangle (continuation pattern) to get that true follow through to the far end.
This breaks down with the red setup below that 163 level.
These are price levels on the 1 year chart. They are as follows from top to bottom – 291.30, 274.29, 241.26, 205.49, 189.66. Below, they are resistance. Above, they are support. Under the pattern, support is 145.00, 100.00.
Moving onto $AMC –
With that large bounce on 7/8 – this has actually become a falling wedge. These are bullish in nature. That being said, we are obviously in danger of breaking it down today. For that to not happen, we must hold 38.54 on every daily close, sloping down each day. Below, the setup is invalid and nearby support is at 36.77 and 33.61.
The pattern breaks up on a daily close above 55.00 sloping down each day. Price targets for the breakout would be 65.10, 75.00, 100.00.
These are price levels on the 1 year chart. They are as follows from top to bottom – 65.10, 61.18, 51.00, 36.77, 33.61, 20.46, 16.79. There is a few more but they are so far away there is no reason to plot them. I try to keep my charts as clean as possible.
Note the gap at 33.61 – this is also one of the most important supports on the chart. Gaps like to be filled, and it's likely we do fill this one.
Remember a breakdown is always confirmed by a candle close on it's respective chart, in this case the daily. For that reason, we could see a candle wick under – fill the gap – wick back over. A close under that level would be very unhealthy and likely mark a move back to 20.46. This is the highest probability point to go short.
Keep in mind technical analysis is a road map, not a crystal ball. I'm providing the most high probability entries & exits – with the most favorable risk/reward ratios. I am not making an absolute prediction of future prices.
Not Financial Advice
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