I've been away for a few weeks. Actually, there really hasn't been anything to be analyzing as we were stuck in a long boring consolidation phase. The fact that 
AMC does not want to go lower suggests strong buying at support, and sellers have exhausted themselves. I still have all my shares, and I just recently purchased some June 18 call options as some bullish signs that I noticed have been triggered.
First of all, we must talk about what has happened. To analyze the future, we must talk about the past. We gamma squeezed from the $2 level all the way to $20. This was a 10x for those who got in at the bottom. Big profits were made, however we saw a strong retracement back down to the mid $5 level. I noted many bullish consolidation signs and came on here at $5.60 to call for a big imminent spike. I have held most of my shares since February 19 and am still in decent profit. We rose from $5.60 all the way to $14.50. This was almost a 150% gain!
Shorts have been doubling down ever since the drop from $14.50 THINKING they got another chance to short this to 0! Many news articles, big personalities on television, and even the wolf of wall street came out saying that this stock is going to drop heavily. Thankfully, the CEO of AMC came out to clear any doubt and publicly say that irrespective of what happens on May 4 on the share dilution matter, 0 shares will be released onto the market. This means no dilution this year. It benefits everyone, including the CEO of AMC for the squeeze to happen because even if he were to dilute it, he would be smart to wait until the hedge funds implode and retails bids this stock up to $100+ where he could raise a lot more money than if he were to dilute his stock at these paltry low levels.
On to the technical analysis:
I am seeing very bullish signs. The pattern of this stock has actually morphed into a massive bullish pennant. The target for this pennant is $25. Will we see $25 very soon? I believe so! But first we must break the most important line of defense for the bears which is the $11.00 range. This range actually holds the line between bear and bull AMC. The reason why I bought more AMC and OTM call options for June 18, is because I noticed that we successfully retested support twice and have bounced strongly on the descending resistance which formed all the way up from our peak of $14.50 to our lowest point of $8.00. This means that resistance is now SUPPORT. This is a very strong sign and one that is an early confirmation sign. In addition, the shorts have been unable to drop this stock any further on LOW VOLUME. VERY bullish. If you want to be extra cautious, I would wait until breaking $11.xxx level and confirming that as a support. Hopefully, once we break and confirm this support, I can come on back here and celebrate the fact that we broke AMC's strongest resistance level and the squeeze will be next. But we must take things one step at a time as patience is needed.
Not financial advise, but things are looking very good for AMC at the moment, and IMO you can't really go wrong buying AMC here. I've always said that below $10 is a gift as I believe this stock will have nothing but positive catalysts for the next year or so.
AMC does not want to go lower suggests strong buying at support, and sellers have exhausted themselves. I still have all my shares, and I just recently purchased some June 18 call options as some bullish signs that I noticed have been triggered. First of all, we must talk about what has happened. To analyze the future, we must talk about the past. We gamma squeezed from the $2 level all the way to $20. This was a 10x for those who got in at the bottom. Big profits were made, however we saw a strong retracement back down to the mid $5 level. I noted many bullish consolidation signs and came on here at $5.60 to call for a big imminent spike. I have held most of my shares since February 19 and am still in decent profit. We rose from $5.60 all the way to $14.50. This was almost a 150% gain!
Shorts have been doubling down ever since the drop from $14.50 THINKING they got another chance to short this to 0! Many news articles, big personalities on television, and even the wolf of wall street came out saying that this stock is going to drop heavily. Thankfully, the CEO of AMC came out to clear any doubt and publicly say that irrespective of what happens on May 4 on the share dilution matter, 0 shares will be released onto the market. This means no dilution this year. It benefits everyone, including the CEO of AMC for the squeeze to happen because even if he were to dilute it, he would be smart to wait until the hedge funds implode and retails bids this stock up to $100+ where he could raise a lot more money than if he were to dilute his stock at these paltry low levels.
On to the technical analysis:
I am seeing very bullish signs. The pattern of this stock has actually morphed into a massive bullish pennant. The target for this pennant is $25. Will we see $25 very soon? I believe so! But first we must break the most important line of defense for the bears which is the $11.00 range. This range actually holds the line between bear and bull AMC. The reason why I bought more AMC and OTM call options for June 18, is because I noticed that we successfully retested support twice and have bounced strongly on the descending resistance which formed all the way up from our peak of $14.50 to our lowest point of $8.00. This means that resistance is now SUPPORT. This is a very strong sign and one that is an early confirmation sign. In addition, the shorts have been unable to drop this stock any further on LOW VOLUME. VERY bullish. If you want to be extra cautious, I would wait until breaking $11.xxx level and confirming that as a support. Hopefully, once we break and confirm this support, I can come on back here and celebrate the fact that we broke AMC's strongest resistance level and the squeeze will be next. But we must take things one step at a time as patience is needed.
Not financial advise, but things are looking very good for AMC at the moment, and IMO you can't really go wrong buying AMC here. I've always said that below $10 is a gift as I believe this stock will have nothing but positive catalysts for the next year or so.
Note
Looks like the 11.00 level resistance is still holding below. At this point, you want to wait for a daily close above the 11.00 range (especially above 11.60) because the manipulation is quite apparent even on the 4 hour chart. A lot of momentum was brought to the upside, only for them to smack it down.
I believe they are running out of ammo to continue to hard short and its only a matter of time before the big whales finally start to squeeze the hedgies. A lot of the bullish institutions are still waiting for this level to be breached before sending in some more ammo to push us the upside.
We are winning the war, even though we lose these small battles. We must continue to hold the line, and not panic sell. The large spike that is to come will be worth holding for.
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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.