AMC made a perfect bounce of the 0.786 Fib level (20$ level) earlier this week. This lead to a technical breakout above the 25-26$ level of resistance. We have established strong support at the 25-26$ range with signifficant volume spikes. We are at the micro times frames trading above the VWAP which was previously seen as resistance becoming new support. I am looking at a healthy retracement to the low 28's or 27.7$. These levels should hold. Otherwise i am expecting 26.7$ as a strong support zone which should lead to a good bounce.
At the current time we are overbought on the MFI and the Stochastic. We also haven't managed to close above a huge VPVR resistance node at the 29.7$. This could push the price for further downside but is in my opinion unlikely due to the fact that AMC has started to trade with higher volume. AMC is currently on a short term uptrend with increasing volume. Remember the trend is your friend and that volume predicts price.
We are on the 2h chart seeing a cup and handle formation. This is a very bullish pattern. I am expecting a little dip for the creation of the handle towards the high 27$ range. Tis would create the handle and bounce the price to 34$. If this level of resistance is broken (34$) with a high amount of volume making it new support we are going to trade above the 200EMA which is a bullish reversal sign. The cup and handle formation could lead to a break of 36$ which would make us fill the gap at 38.8$. At this point of time i am expecting a signifficant amount of FOMO-Buying which could bounce the price even more up to the daily VPVR level of 40$. If the overall market sees a bounce AMC should follow nicely which could lead to the continuation of the uptrend.
The target of 17$ that a lot of people in the AMC community have been speculating is not likely at the current state.
*WARNING* (This article should not be seen as financial advise. I am not a financial advisor.)
Thank you for reading
At the current time we are overbought on the MFI and the Stochastic. We also haven't managed to close above a huge VPVR resistance node at the 29.7$. This could push the price for further downside but is in my opinion unlikely due to the fact that AMC has started to trade with higher volume. AMC is currently on a short term uptrend with increasing volume. Remember the trend is your friend and that volume predicts price.
We are on the 2h chart seeing a cup and handle formation. This is a very bullish pattern. I am expecting a little dip for the creation of the handle towards the high 27$ range. Tis would create the handle and bounce the price to 34$. If this level of resistance is broken (34$) with a high amount of volume making it new support we are going to trade above the 200EMA which is a bullish reversal sign. The cup and handle formation could lead to a break of 36$ which would make us fill the gap at 38.8$. At this point of time i am expecting a signifficant amount of FOMO-Buying which could bounce the price even more up to the daily VPVR level of 40$. If the overall market sees a bounce AMC should follow nicely which could lead to the continuation of the uptrend.
The target of 17$ that a lot of people in the AMC community have been speculating is not likely at the current state.
*WARNING* (This article should not be seen as financial advise. I am not a financial advisor.)
Thank you for reading