AMC has been following a perfectly shaped symmetrical triangle ever since our topping out of at the $20 level all the way to our lowest low of the mid 5.00 level (where I got in with 85% of my shares)...Anyone that has been following me knows that I have been in since very early and did not sweat the drop as much as some of the people who just got in recently. Nonetheless, I believe we are still early. Technically, buying now *might* be considered a risky/gambling play as the price has not broken either which way yet, however, I can confidently say that based off of my experiences as a trader, the price found a local bottom yesterday. The strong bullish engulfing candle that over lapped the previous 3 bear bars and the follow through after that is enough evidence for me that we have shaken off weak/paper hands and the only ones holding now are those that are true to the plan. The volume also confirmed it as we were trading with low volume all through most of the bearish days. There is now information that hedgies are shorting through ETFs, dark pools, and other nefarious ways simply to get around the SSR rule and the fact that there really aren't physical shares left to short. This is going to develop into a big disaster for them, and for this reason is enough to be bullish on
AMC for the inevitable squeeze. I did say a month ago when I got in at 5.61 that this was going to be at least a 2 month hold for a 200% gain (You can check my first idea on
AMC). Nothing goes in a straight line and while we enjoyed three continuous weeks of upside, we were due for a correction. This is normal and completely healthy for the trend. We do not want a repeat of January as that will be catastrophic for the health of the stock. Today, I bought more aggressive call options and I am looking for the price to make a significant breakout by Tuesday or Wednesday.
I do not discount another possibility of another drop to the $10.00 level or even a wick below to shake off the last few remaining weak hands before a big spike to the upside.
Stay Strong
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.