AMC: Next Key Points we all must keep in mind!

2021年3月11日

Hello traders and investors! Let’s talk about AMC today! It did some very technical movements, and it is about time to update you since my last analysis (the link to it is below, as usual).

In my last analysis we discussed the two most important key points for AMC, the black line at $ 7.63 and the purple trendline. Well, AMC respected again the $ 7.63 as a support level before it defeated the purple trendline, triggering a buy sign.

What’s even more curious is that it did break the trendline by doing a Breakaway Gap (yellow area), which is a very powerful sign. A Breakaway Gap is a gap that defeats a support or resistance, in this case, it defeated the trendline and the 21 ema.

Now, AMC is doing a pullback to the 21 ema, which is normal and expected. Let’s see the daily chart for more clues:



We already talked about how the bulls were in the control of this situation, thanks to our reading of the volume, and the movement seen this week reinforces this idea. The volume is increasing, as the price goes up, all according to the 5th Tenet of the Dow Theory: The Volume Must Confirm the Trend. When we combine our typical Price Action style with a good reading of the volume, we have all the tools we need to trade well.

But what now? Pullbacks to the 21 ema are expected, and I believe we’ll see one, but since it did break the bearish sentiment, we can expect it’ll fill the gap at $ 12.91 (red line). If AMC will fly again or not, we don’t know. It feels it is too late to buy it (the good buy was around the $ 7), but if it breaks the $ 12.91, it’ll trigger a Cup & Handle chart pattern, and AMC could easily seek the $ 20 again.

This stock is harder to read now, but soon it’ll do something interesting again. And if you liked this analysis, remember to follow me to keep in touch with my daily studies, and to support this idea with your like!

Thank you very much!