$AMC: Breakout Is Near!
Updated
AMC is beginning to look ready for a reversal. We had a rough retracement to 12.90$ before the price bounced back to 15$. We managed to close a daily candle below 15$ which was not a good sign at the time. This daily close means breaking the 200 Weekly Moving Average which is a level of significance. We also attempted breaking a large VPVR node on the chart 14.5-15$. If we saw a rejection at this level AMC would consolidate for a long time.
Luckily we managed to reclaim the 15$ level which is a strong sign of reversal. We have also mounted the 7.86 Fib level located at 14.64$ which caused the price to bounce.
As of now we are in a descending wedge which is a bullish pattern. A breakout of this pattern with an engulfing amount of volume would cause the break of the Ichimoku Cloud. In addition the price of AMC would totally reverse. The Cloud is protected by large VPVR nodes of resistance (16.15) (16.85) (17.23) (18.8). All these levels are levels of resistance which brought large selling-pressure to AMC. Once these levels are touched we get hit by selling-volume. The 16$ level is the 6.18 Fib level which needs to be reclaimed as support. The 0.5 Fib at 16.96$ will be strong resistance which needs to be reaclaimed as support to break the Ichimoku Cloud.
Personally i am bullish on AMC due to the fact that support seems to hold up really well. A slight retracement to 15.26$ is a likely scenario to regain some buying-volume. The 15.26$ level is a large VPVR node which would be a healthy retracement.
We have also seen a really good bullish reaction on the NASDAQ 100 which has caused AMC to follow. If we see a continuation on the NASDAQ 100 AMC should follow.
The options chain indicated bullish activity last week which caused us to reverse from 12.90$ to 15.8$.
The MFI is printing a really strong bullish divergence. This is a positive signal of an uptrend. Also, watch out for a bullish TK-Cross on the Ichimoku Cloud as the lines get close to each other.
The price target of this descending wedge is a retest of 21$ which is a very likely scenario for the week. If we break the 21$ level we are ready to run! Before this move a reclaim of the 19.54$ level is important. We need to start closing daily candles above 19.54-20.50$ for AMC to see bullish price action. The volume is still low, watch for a volume spike to assure the break of this descending wedge. If this pattern is broken with little volume we are due for a retracement to 14.5-15.26$.
*WARNING* This thread is not financial advice. I am not a financial advisor.
Thank you for reading.
Luckily we managed to reclaim the 15$ level which is a strong sign of reversal. We have also mounted the 7.86 Fib level located at 14.64$ which caused the price to bounce.
As of now we are in a descending wedge which is a bullish pattern. A breakout of this pattern with an engulfing amount of volume would cause the break of the Ichimoku Cloud. In addition the price of AMC would totally reverse. The Cloud is protected by large VPVR nodes of resistance (16.15) (16.85) (17.23) (18.8). All these levels are levels of resistance which brought large selling-pressure to AMC. Once these levels are touched we get hit by selling-volume. The 16$ level is the 6.18 Fib level which needs to be reclaimed as support. The 0.5 Fib at 16.96$ will be strong resistance which needs to be reaclaimed as support to break the Ichimoku Cloud.
Personally i am bullish on AMC due to the fact that support seems to hold up really well. A slight retracement to 15.26$ is a likely scenario to regain some buying-volume. The 15.26$ level is a large VPVR node which would be a healthy retracement.
We have also seen a really good bullish reaction on the NASDAQ 100 which has caused AMC to follow. If we see a continuation on the NASDAQ 100 AMC should follow.
The options chain indicated bullish activity last week which caused us to reverse from 12.90$ to 15.8$.
The MFI is printing a really strong bullish divergence. This is a positive signal of an uptrend. Also, watch out for a bullish TK-Cross on the Ichimoku Cloud as the lines get close to each other.
The price target of this descending wedge is a retest of 21$ which is a very likely scenario for the week. If we break the 21$ level we are ready to run! Before this move a reclaim of the 19.54$ level is important. We need to start closing daily candles above 19.54-20.50$ for AMC to see bullish price action. The volume is still low, watch for a volume spike to assure the break of this descending wedge. If this pattern is broken with little volume we are due for a retracement to 14.5-15.26$.
*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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