AMC recently broke out and pushed to the upside of the downtrend., however buyers are still not showing a lot of strength, but this is usually normal during trend shifts. Relatively low volume and volatility, leading to a flatish price usually signals a trend change.
$5.30 has excellent support and I'd imagine shorts will be looking to exit their trade (buy back their shorted shares) if AMC happens to come close to this level. You can see sellers have pushed the price close to 5.30 but buyers have front ran it every time, showing that there is clear demand at this level.
Ideal entry would be 5.30, but the price may not go that low again for a while. I think a position at 6 or above, with a stop below 5, would be a good entry with a good risk reward.
$5.30 has excellent support and I'd imagine shorts will be looking to exit their trade (buy back their shorted shares) if AMC happens to come close to this level. You can see sellers have pushed the price close to 5.30 but buyers have front ran it every time, showing that there is clear demand at this level.
Ideal entry would be 5.30, but the price may not go that low again for a while. I think a position at 6 or above, with a stop below 5, would be a good entry with a good risk reward.
Comment:
AMC hitting 5.30 support today. Also closing the gap from the initial pump.
Comment:
Just wanted to add quick that it's bad trading to assume it will bounce at support. The correct way to trade support is to wait for the price to bounce and give you a pivot to put a stop loss beneath.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.