The Ultimate Reversal of $AMC
These last 2 months have caused a lot of uncertainty for stock holders on the market. This has caused shareholders to exit their positions due to fear of losing capital. The stock market has had a large retracement that is now about to reverse. In approximately 1h we have the Fed meeting. This meeting is going to be crucial for the stock market. If we get bullish news the stock market should see a large bounce. I am expecting AMC to follow this reversal.
As of now AMC has been trading in a descending channel since the 8th of November 2021. This pattern is very bullish and is set to break out very soon. On Monday AMC made a retracement to test liquidity at the 14$ level. This level was the breakout level in May 2021. Old resistance becomes new support. This 14$ level bounced the price a signifficant amount with good volume making it reliable support. This level was also the .706 Fib level if measured at the breakout level of January 2021 at 5$.
At the current state i am not expecting a further retracement. AMC will in my opinion trade far above 14$ per share if the Fed meeting turns out in our favor. A slight retracement to 16.64$ might happen to confirm it as support. If we close daily and 4h candles below 16.64 i am expecting AMC to turn bearish again retesting the high 15$ range. A close above 17$ is a good sign of a bullish reversal. The TD Sequential is printed a red 9 at the 18$ range indicating that this level was the bottom. The TD-Sequential is printing a green 1 engulfing the previous candles. This is an indication of an uptrend. This move is also confirmed by the MFI consistently making higher lows. A short term resistance level is the 18$ level confirmed by a large VPVR node. We also managed to establish strong liquidity at the 16$ range (confirmed by a VPVR node). We also have resistance at 20$ (confirmed by a VPVR node). A break above these levels need to happen quickly so that we reclaim these important levels. I also noticed that the volume keeps engulfing selling volume which is a bullish signal for a potential reversal. If we got an engulfing selling volume at these critical levels i would be bearish on AMC stock. AMC also printed a bullish hammer on the 4h chart + the daily chart. This has caused AMC to close above that candle. This is a sign for a bullish reversal. If AMC closed at or below the bullish hammer it would be bearish causing the stock price to plummet.
The largest confirmation of this bullish reversal would be a 4h TK-Cross on the Ichimoku Cloud. This movement would have to be confirmed with a signifficant amount of volume. As long as the Ichimoku Cloud is being used as resistance AMC will remain trading under a bear market.
Looking at the options chain there is 25k Volume and 7k Open Interest at the 17$ level. We also have 40k Volume + 8.5k Open Interest at the 18$ level. At the 19$ level there is 21k Volume + 11k Open interest. We also got 33k Volume and 13k Open interest at the 20$ level. This options chain hints that AMC will be trading at or above these levels to keep these options in the money. The 14-15$ level are unlikely to be revisisted due to the fact that these options do not have a lot of Volume and Open Interest (3.7k Volume, 2.8k Open Interest, 15$).
If the Fed meeting goes well my conservative price target of the week is the 22$ level.
*WARNING* This thread is not financial advice. I am not a financial advisor.
Thank you for reading.
As of now AMC has been trading in a descending channel since the 8th of November 2021. This pattern is very bullish and is set to break out very soon. On Monday AMC made a retracement to test liquidity at the 14$ level. This level was the breakout level in May 2021. Old resistance becomes new support. This 14$ level bounced the price a signifficant amount with good volume making it reliable support. This level was also the .706 Fib level if measured at the breakout level of January 2021 at 5$.
At the current state i am not expecting a further retracement. AMC will in my opinion trade far above 14$ per share if the Fed meeting turns out in our favor. A slight retracement to 16.64$ might happen to confirm it as support. If we close daily and 4h candles below 16.64 i am expecting AMC to turn bearish again retesting the high 15$ range. A close above 17$ is a good sign of a bullish reversal. The TD Sequential is printed a red 9 at the 18$ range indicating that this level was the bottom. The TD-Sequential is printing a green 1 engulfing the previous candles. This is an indication of an uptrend. This move is also confirmed by the MFI consistently making higher lows. A short term resistance level is the 18$ level confirmed by a large VPVR node. We also managed to establish strong liquidity at the 16$ range (confirmed by a VPVR node). We also have resistance at 20$ (confirmed by a VPVR node). A break above these levels need to happen quickly so that we reclaim these important levels. I also noticed that the volume keeps engulfing selling volume which is a bullish signal for a potential reversal. If we got an engulfing selling volume at these critical levels i would be bearish on AMC stock. AMC also printed a bullish hammer on the 4h chart + the daily chart. This has caused AMC to close above that candle. This is a sign for a bullish reversal. If AMC closed at or below the bullish hammer it would be bearish causing the stock price to plummet.
The largest confirmation of this bullish reversal would be a 4h TK-Cross on the Ichimoku Cloud. This movement would have to be confirmed with a signifficant amount of volume. As long as the Ichimoku Cloud is being used as resistance AMC will remain trading under a bear market.
Looking at the options chain there is 25k Volume and 7k Open Interest at the 17$ level. We also have 40k Volume + 8.5k Open Interest at the 18$ level. At the 19$ level there is 21k Volume + 11k Open interest. We also got 33k Volume and 13k Open interest at the 20$ level. This options chain hints that AMC will be trading at or above these levels to keep these options in the money. The 14-15$ level are unlikely to be revisisted due to the fact that these options do not have a lot of Volume and Open Interest (3.7k Volume, 2.8k Open Interest, 15$).
If the Fed meeting goes well my conservative price target of the week is the 22$ level.
*WARNING* This thread is not financial advice. I am not a financial advisor.
Thank you for reading.
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