While things continue to track Wyckoff Reaccumulation behavior on the macro timeframe and Cycle 3's echo of Cycle 1 remains consistent (both charts below), I thought I'd update the micro view of AMC's accumulation within the spring.
I've preferred this chart on the 10m view because the shorter timeframe signals MFI reactions a little more quickly, the 15m does offer a higher 200EMA, which we've broken as resistance and now seem poised to retest as support. I'd encourage you to click "Make Chart Mine" and look at this on the 10m timescale as well.
With the sign of strength in the move this morning above the resistance zone, I think the 3a path is most likely. As you can see there's a bullish divergence in the MFI and volume with the rising price action. Combined with the RSI being oversold, this signaled the turnaround which took place at ~$34. Now I expect to see the price retrace to a spot between the 200EMA and the top of the resistance zone. Establishing the $31-and change area as support would (for me) confirm SOS and this micro accumulation entering Phase D.
If, however, we break below the pink resistance zone and reenter the trading range, both the yellow and blue paths remain in play.
I have pretty strong conviction that 3a is the more likely path, which would mean we are exiting Phase C on the reccumulation we've been in since June. Path 3b only delays that inevitable move up through the trading range by a few days.
I've preferred this chart on the 10m view because the shorter timeframe signals MFI reactions a little more quickly, the 15m does offer a higher 200EMA, which we've broken as resistance and now seem poised to retest as support. I'd encourage you to click "Make Chart Mine" and look at this on the 10m timescale as well.
With the sign of strength in the move this morning above the resistance zone, I think the 3a path is most likely. As you can see there's a bullish divergence in the MFI and volume with the rising price action. Combined with the RSI being oversold, this signaled the turnaround which took place at ~$34. Now I expect to see the price retrace to a spot between the 200EMA and the top of the resistance zone. Establishing the $31-and change area as support would (for me) confirm SOS and this micro accumulation entering Phase D.
If, however, we break below the pink resistance zone and reenter the trading range, both the yellow and blue paths remain in play.
I have pretty strong conviction that 3a is the more likely path, which would mean we are exiting Phase C on the reccumulation we've been in since June. Path 3b only delays that inevitable move up through the trading range by a few days.
