AMC-Will Taylor Swift & Beyonce bring some much needed love?
I've been watching AMC for a couple of weeks thinking to myself...I bet the Taylor & Beyonce Concert films will bring some much needed love & cash to this dying theater chain. So a "bet" with myself is what I am taking on this morning based upon the following analysis:
Positives: Yesterdays price cut right through the daily Tenkan Sen (thick red line) and closed above it with Volume showing green days as having more volume and red days having less volume. However, in order for the stock to show "strong" positive momentum price must stay above the daily Tenkan Sen; which is at $7.04 today. If price dips below the Tenkan Sen, yesterday's strong "breakout" is invalidated. A very weak positive: the 50 MA has moved above the 63MA (50 because so many retail traders use this MA & 63 because this is how long it typically takes an investment fund to exit or enter a position...IMO the 63 is far more important IF you are going to be using a MA)
Negative: We opened today below yesterday closing price which doesn't show good follow through from yesterdays breakout. Typically something that is really, really strong will just go after yesterday's price action.
Just wanted to show how I bottom fish...
Entry Price: $7.26
Stop: 7.02
Please note: This is not a LT trade but a short term trade into 2024 Qtr 1 earnings as I do think AMC is a dying theater chain. Also note, I have only risked 1% of my total capital to this "bet" with myself.
Positives: Yesterdays price cut right through the daily Tenkan Sen (thick red line) and closed above it with Volume showing green days as having more volume and red days having less volume. However, in order for the stock to show "strong" positive momentum price must stay above the daily Tenkan Sen; which is at $7.04 today. If price dips below the Tenkan Sen, yesterday's strong "breakout" is invalidated. A very weak positive: the 50 MA has moved above the 63MA (50 because so many retail traders use this MA & 63 because this is how long it typically takes an investment fund to exit or enter a position...IMO the 63 is far more important IF you are going to be using a MA)
Negative: We opened today below yesterday closing price which doesn't show good follow through from yesterdays breakout. Typically something that is really, really strong will just go after yesterday's price action.
Just wanted to show how I bottom fish...
Entry Price: $7.26
Stop: 7.02
Please note: This is not a LT trade but a short term trade into 2024 Qtr 1 earnings as I do think AMC is a dying theater chain. Also note, I have only risked 1% of my total capital to this "bet" with myself.
Comment:
Rule following got me out of this trade quickly and without harm...I don't baghold I will continue to update any bullish price action however the breakdown this week is saying more bearish price action will follow.
Comment:
Still trying to bottom fish this name for a Q1 earnings beat...let's see how price reacts as it reaches the 1.618 FIB level...price should respect this level. I was spot on regarding the breakdown and how you could have went "short" on the breakdown...as noted above I did not go short but IF I did I would be taking profits around this level.
Comment:
Lastly update on this dog...they did report earnings and earnings were attributable to Taylor Swift & Beyonce however traders did not give any love to the stock after earnings. If you went long around $4 or below...I would NOT hold this stock on a daily closing below $4. It's already broken the upwards structure so unless it can get back in structure then it's bye, bye for a bit.