$AMC retracement to 27$ before the break of the 200SMA?
AMC has seen a huge rally the past couple of days. This large movement got rejected by the 200SMA at the 32$ range. This is heavy resistance due to the fact that this level contains a bearish OB (Orderblock). The 3h chart indicates that AMC will remain in a bear market a short period of time due to the fact that we haven't gotten a single 3h candle closing within or above the Ichimoku Cloud. The Cloud is being used as resistance. I am looking for a retracement to the 26.85-27.75$ range to hopefully bounce the price and close a candle within or above the Ichimoku Cloud on the 3 chart. Todays dip was driven with low volume which indicates that people are holding their shares.
AMC also closed below a large VPVR node at the 29-30$ level which is seen as strong resistance. The MFI indicator looks to be overbought which could lead to some minor bearish divergence. I would be surprised if AMC bounced from here due to the fact that the there are no reversal signals. We could have a short term runup to get rejected by 29.5$ which could later lead to a deeper retracement. My hopes are that this retracement happens quickly so AMC can get out of the 20's and hopefully break the 200SMA at 32$.
26.8-27.8$ has been heavy resistance before the move to 20$ confirmed with a signifficant amount of Volume. A retest of the previous top (resistance) would be a healthy retracement for AMC. I personally have buy-orders set at 26.85$. If this zone doesn't get hit my order will be adjusted.
A safe entry for AMC would be a daily close above the Ichimoku Cloud and the 200SMA. When the 200SMA is used as support with large volume backed up by the MFI and the Ichimoku Cloud this would indicate that AMC is trading in a bull market. This would lead to the next bull-run up to the 50's.
Also keep an eye on the options. There are some interesting calls out there that could be driving AMC to a new uptrend. The days to cover are rising according to Fintel which could indicate that a short squeeze is near. The short interest of AMC seems to be above 20%.
This analysis should not be seen as financial advise. I am not a financial advisor.
Thank you for reading and feel free to give me your thoughts on AMC.
AMC also closed below a large VPVR node at the 29-30$ level which is seen as strong resistance. The MFI indicator looks to be overbought which could lead to some minor bearish divergence. I would be surprised if AMC bounced from here due to the fact that the there are no reversal signals. We could have a short term runup to get rejected by 29.5$ which could later lead to a deeper retracement. My hopes are that this retracement happens quickly so AMC can get out of the 20's and hopefully break the 200SMA at 32$.
26.8-27.8$ has been heavy resistance before the move to 20$ confirmed with a signifficant amount of Volume. A retest of the previous top (resistance) would be a healthy retracement for AMC. I personally have buy-orders set at 26.85$. If this zone doesn't get hit my order will be adjusted.
A safe entry for AMC would be a daily close above the Ichimoku Cloud and the 200SMA. When the 200SMA is used as support with large volume backed up by the MFI and the Ichimoku Cloud this would indicate that AMC is trading in a bull market. This would lead to the next bull-run up to the 50's.
Also keep an eye on the options. There are some interesting calls out there that could be driving AMC to a new uptrend. The days to cover are rising according to Fintel which could indicate that a short squeeze is near. The short interest of AMC seems to be above 20%.
This analysis should not be seen as financial advise. I am not a financial advisor.
Thank you for reading and feel free to give me your thoughts on AMC.
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