The Rise of AMC! (HUGE UPSWING LOADING!)

2022年1月23日

AMC has been trending in a descending channel with descending support and resistance. This channel was formed on the 8th of November 2021. The descending formation is valid due to the fact that we get selling pressure once the line of resistance is toutched causing a dip with bearish volume. The lower lines are levels of support. Notice the fact that these lines tend to bounce the price for AMC to hit resistance.

As of now AMC has filled the gap at 16.50$. This level caused AMC to bounce all the way to almost an 18$ close. That level of support is valid and supported by a good amount of bullish volume. The daily volume engulfed the recent bearish volume which is a bullish reversal sign. We also wicked below the .786 Fib which later caused the price to have a short term bounce and we managed to close a daily candle above this Fib level. The bad thing about this is the fact that the S&P 500 dropped signifficantly at the end of the day bringing selling pressure to AMC.

We need to start pushing back up to the 20$ range which is a large VPVR node that indicates resistance. This level needs to be reclaimed as support to keep AMC moving to the upside. If all of the indexes are strong AMC should follow nicely causing a pretty decent upswing. Currently we are bearish due to the fact that we are trading below the Ichimoku Cloud and the 200SMA. I also noticed the fact that the MFI is at a really low level. Last time the MFI was this low AMC had a nice 50% upswing before being rejected by the 200SMA. The minimum price target of this descending channel is where it started which puts us at the mid 40$ range.

There is also a slight possibility that we see a short term retracement to the 14$ range. This level is the largest VPVR node which would be the strongest level of support on this chart. A touch of this will make AMC bounce 5-15$ on the same day. A retest of this area would occur if the markets see a continuation of the current downtrend. Bad news on the FED meeting could cause the stock market to continue the bearish trend which could lead AMC to 14$ causing a massive spike in the price to the upside. I am not of the belief that this is going to play out due to the fact that the daily MFI is already really low. We also got an engulfing bullish volume on the 21st of January which eliminates all of the previous selling pressure.

Looking at the options chain we have a lot of volume and open interest at the range of 18-20$. Most likely AMC will be trading in this region if the stock market doesn't bounce. Closing daily candles above these levels will cause bullish options heading in to the money which will cause the uptrend of AMC. There is a good amount of volume and open interest at the 25$ range set to expire on the 28th of January. Hopefully we reach this level so that we begin a new uptrend.

A confirmation of the AMC bull run will be if we see a bullish TK-Cross above the Ichimoku Cloud with a large amount of buying volume and the MFI making higher lows.

If the market starts to recover this week i am expecting AMC to retest the 22$ range. A break of this level and a daily close above 23$ will put us in a good position for an upswing.

As mentioned in the previous thread my long term conservative price target of AMC is 145/share.

*WARNING* This thread is not financial advice. I am not a financial advisor.

Thank you for reading!