AMC and Pennant Flag on Daily
So, a five month long Pennant is atypical, but there it is staring straight in our faces. Because the upsurge was higher 5 months back, and then the Pennant was formed, this is a setup for a Bullish Pennant breakout. I follow support and resistant lines as a staple and patterns such as the Pennant secondary, but this is like this is being conjured up in some witch's brew, this perfect pattern. To complete the pennant, I anticipate it will touch around 36.70 which has a traditional strong support area (confluence in many time frames and consolidation area). This same support area lines up with the angle of the Pennant. From there I anticipate either one of two things: It bounces up and hits the upper angle at around 41.00 and comes back down one more time, bounces and then goes through at around 39.50 for the breakout. This coincides with earnings, in which AMC tends to run higher after earnings. Or it bounces at 36.70 area and goes up and takes out the Pennant immediately. And as the Apes say, to the moon.
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.