AMC is a NO GO right now, expect drop to $20
Another meme stock, another dollar (to lose, in this case)...
This is another one where volume has broken out and above the previous consolidation zone in white with volume, HOWEVER, it did so on LOWER volume than the previous high. Which means that volume has diverged.
Now, this is NOT a complete deathblow to AMC as of yet, because several different things have to happen for it to be a dead cat.
First off, if you're in AMC... Don't be, at least not yet. If you are in a long position from this $30-$50 consolidation zone AMC has been in the past few months, this is a good time to just stop loss and walk away. There are better places to enter a trade because it's not looking too great right now.
First off, I do expect a drop to the $20 range to test the top of the last trading range. This happens all the time.
If you want to try for a long position there, I would definitely keep four eyes on what the volume is telling you once the previous higher high gets touched or broken. If we fall below it on high volume, that's all she wrote for AMC. If we fall below it on low volume, there is a long play to be had that you can ride back to $70 or possibly a new ATH.
If we get that new ATH after the retrace, you will need to pay attention to volume, because if we keep getting higher highs on lower and lower volume, that will immediately tell you that the fun on this meme stock is coming to an end.
Be really careful on this stock. Frankly, I wouldn't touch it with a stick right now if I were you.
This is another one where volume has broken out and above the previous consolidation zone in white with volume, HOWEVER, it did so on LOWER volume than the previous high. Which means that volume has diverged.
Now, this is NOT a complete deathblow to AMC as of yet, because several different things have to happen for it to be a dead cat.
First off, if you're in AMC... Don't be, at least not yet. If you are in a long position from this $30-$50 consolidation zone AMC has been in the past few months, this is a good time to just stop loss and walk away. There are better places to enter a trade because it's not looking too great right now.
First off, I do expect a drop to the $20 range to test the top of the last trading range. This happens all the time.
If you want to try for a long position there, I would definitely keep four eyes on what the volume is telling you once the previous higher high gets touched or broken. If we fall below it on high volume, that's all she wrote for AMC. If we fall below it on low volume, there is a long play to be had that you can ride back to $70 or possibly a new ATH.
If we get that new ATH after the retrace, you will need to pay attention to volume, because if we keep getting higher highs on lower and lower volume, that will immediately tell you that the fun on this meme stock is coming to an end.
Be really careful on this stock. Frankly, I wouldn't touch it with a stick right now if I were you.
Doing another idea: