I drew this over a week ago, ahead of the latest FED estimates released yesterday.
If my estimate is correct, and now paired with the FED numbers, then we should see a renewed bullish momentum on several of the most popular MEME stocks today.
I’ll explain the study above bit by bit as we go.
*This is 95% technical observations, and very little fundamental review of the business.
*In terms of sentiment, I am more interested in the movies that will come out in the coming years, not in ape mob mentality.
*I like the cinematic experience a lot, and do enjoy my movies better with the best theatres.
*From what I gather, AMC’s numbers are far from good, so the fact that this stock is holding above $1 today is somewhat of a miracle in itself.
*Original thread can be found here: AMC - Watching out for 1 final Bounce / Double Bottom
Looking back at the beginning of 2021, we study the first big ramp up to AMC’s stock price.
Notice the 5 gaps or weak candle transitions, if the big support channel breaks, these will easily get filled.
4.61 to 9.01 is the Big Support channel, and you will notice how it is holding strong enough even after a year.
What we what to see is for 4.61 to hold strong despite the series of oncoming sell-offs.
Should AMC’s stock price survive over that line to 2023, then this bullish theory will only gain strength.
It’s simply tracking along with the broad market.
So far, no change in fundamentals.
Current Short Interest data…
From what I know, AMC borrowers usually start covering at over 20% CtB.
Until the broad market sentiment changes, I’m not expecting sustained buying power when some of the short do cover.
