AMC - Price fell below all time low
Updated
Amc is not looking good. Price fell below its all time low of $10.35 on the monthly time frame, and is currently at $8.62.
Amc tested this level several times in 2020 (orange horizonal line,) but never did it close below this level.
There's 22 days left in September so there's still time for price to close above $10.35.
If price closes September below $10.35, we then would need October's candle to also close below $10.35 to confirm a possible fall into no man's land.
I call it no man's land because there's no support under $10.35, and price could literally fall into the pennies. Not saying this will happen, but with no support left, AMC needs to close the month over $10.35 to get out of this quicksand.
Looking at the RSI and Stochastics, when both indicators dipped below their white horizontal lines at the same time (purple circles,) this was a good time to accumulate.
Both accumulation periods resulted in over 50% rises.
Currently the Stochastics has started to break below the 20 level, and momentum is falling. Also RSI is not far from over sold territory, marked at the 30 level.
The reality is if both of these indicators dip below their white horizontal lines, price may also continue to free fall.
Amc tested this level several times in 2020 (orange horizonal line,) but never did it close below this level.
There's 22 days left in September so there's still time for price to close above $10.35.
If price closes September below $10.35, we then would need October's candle to also close below $10.35 to confirm a possible fall into no man's land.
I call it no man's land because there's no support under $10.35, and price could literally fall into the pennies. Not saying this will happen, but with no support left, AMC needs to close the month over $10.35 to get out of this quicksand.
Looking at the RSI and Stochastics, when both indicators dipped below their white horizontal lines at the same time (purple circles,) this was a good time to accumulate.
Both accumulation periods resulted in over 50% rises.
Currently the Stochastics has started to break below the 20 level, and momentum is falling. Also RSI is not far from over sold territory, marked at the 30 level.
The reality is if both of these indicators dip below their white horizontal lines, price may also continue to free fall.
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AMC closed September at $7.99. The stochastics and rsi still appear bearish, andI feel AMC is still in "no man's land."
Until the price can find support above $10.35, I think it will be in trouble.
Yes price can stair step up and retest $10.35, but finding support above this level is key.
Btw, retesting $10.35 from today's price is a 29% increase.
Note
AMC peaked above the resistance level of $10.35, reaching a high of $10.38 intraday (Tuesday 10/10)The key is still for price to close above $10.35 by the end of October. There's 3 more weeks left till the end of the month so there's a lot of time for things to play out.
Is $10.35 a strong resistance level, where price just got rejected and continues on its down trend to "no man's land?"
Or will price continue to test $10.35 and potentially close above it?
I feel we will see some clues by the end of November, after 2 monthly candle closes. Looking at August 2018's monthly candle, it retested its all time low and was rejected and fell 90%. From August 2018 to March 2020, price dropped from $106 to $10.57.
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AMC ended the week of October 13, 2023 at $9.50.Price hit a high of $11.17 last week, and was rejected by resistance at the $10.35 level.
Two more weeks left till the end of the month. Is AMC going to continue making lower lows into "no man's land," or is it going to retest resistance?
Note
AMC never closed a monthly candle above $10.35 TWO months in a row.
Because of this AMC never confirmed support on the $10.35 level.
Yes, AMC closed the month of October above $10.35, but closed the next month's candle below at $6.65. Thus getting rejected into no man's land.
From my original post: "I call it no man's land because there's no support under $10.35, and price could literally fall into the pennies. Not saying this will happen, but with no support left, AMC needs to close the month over $10.35 to get out of this quicksand."
The last three months does look like quicksand, slipping 62%.
Falling below all time lows and being in a downtrend since June 2021, is not a good thing.
Not saying there won't be months where AMC have 30% plus rallies. Matter of fact, AMC saw patches of parabolic rises, even in yearly downtrends.
Watch the current Stochastic RSI. (Orange circle)
When the blue line crosses above the red line, AMC could see a nice rise in price.
There's no guarantee a monthly Stochastic RSI cross up will cause a parabolic rise in price. But there's a possibility. Stochastic RSI cross ups have occurred several times in the AMC monthly chart, and the results were pretty good.
A reminder: This is a monthly chart. It moves very very slowly. Each candle stick is one month of data.
This Stochastic Rsi cross I'm talking about could take many months.
Monthly charts are definitely not sexy, but they're more accurate than the lower time frames.
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