$AMC: Huge Breakout Awaits AMC Stock!
Updated
For the past couple of days we have had a lot of bullish patterns playout. The left chart is the 1h chart which i will present now:
The falling wedge broke to the upside which caused a nice rally for AMC. Later on we formed a rising wedge which luckily broke to the uspide. As of now the price is consolidating in a symmetrical triangle that is ready to breakout. These patterns breakout to the direction of the trend. If the triangle higher-lows (support) is broken the triangle will break to the downside causing a large retracement. Personally i am of the belief that this triangle is going to break to the upside due to the fact that this movement is supported by huge volume and strong bullish divergence on the daily chart (Right side chart). The MFI on the daily chart is looking really strong ready to push us towards the Ichimoku Resistance which is located at 23.7$. If this level gets mounted as support and retested with heavy buy-volume the reversal of AMC is officially confirmed. Short-term we have also mounted the 0.5 Fib which is a level of significance due to it being hard resistance in the past. It also seems like we have mounted strong support between 19.7-20$ which is a good sign. Now we need to reclaim 20.5$ which is a large VPVR node. On Monday i am expecting a clean break out of this triangle. We also have a Bullish TK-Cross on the Daily chart below the cloud which is a weak buying signal that could indicate a trend-reversal. A close above 23.7$ basically confirms a quick move to 30$. If this happens we will most likely experience a gamma squeeze.
The worst case scenario for AMC is breaking below this triangle which will make us retrace to the 7.86 Fib which is located at 18.4$. We could also wick below this level to 17.7$ which should bounce the price heavily.
So far the options chain has been really bullish, hopefully we will see continuation.
*WARNING* This thread is not financial advice. I am not a financial advisor.
Thank you for reading.
The falling wedge broke to the upside which caused a nice rally for AMC. Later on we formed a rising wedge which luckily broke to the uspide. As of now the price is consolidating in a symmetrical triangle that is ready to breakout. These patterns breakout to the direction of the trend. If the triangle higher-lows (support) is broken the triangle will break to the downside causing a large retracement. Personally i am of the belief that this triangle is going to break to the upside due to the fact that this movement is supported by huge volume and strong bullish divergence on the daily chart (Right side chart). The MFI on the daily chart is looking really strong ready to push us towards the Ichimoku Resistance which is located at 23.7$. If this level gets mounted as support and retested with heavy buy-volume the reversal of AMC is officially confirmed. Short-term we have also mounted the 0.5 Fib which is a level of significance due to it being hard resistance in the past. It also seems like we have mounted strong support between 19.7-20$ which is a good sign. Now we need to reclaim 20.5$ which is a large VPVR node. On Monday i am expecting a clean break out of this triangle. We also have a Bullish TK-Cross on the Daily chart below the cloud which is a weak buying signal that could indicate a trend-reversal. A close above 23.7$ basically confirms a quick move to 30$. If this happens we will most likely experience a gamma squeeze.
The worst case scenario for AMC is breaking below this triangle which will make us retrace to the 7.86 Fib which is located at 18.4$. We could also wick below this level to 17.7$ which should bounce the price heavily.
So far the options chain has been really bullish, hopefully we will see continuation.
*WARNING* This thread is not financial advice. I am not a financial advisor.
Thank you for reading.
Trade closed: target reached
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