AMC stock continuously keeps surprising people day by day. Bears have been getting trapped on every consolidation level due to small gamma squeezes. However, I believe the short squeeze has not happened yet. I have seen what short squeezes can do, but I believe what we have seen here is FOMO buying and continuous gamma squeezes as OTM call options continue to close deep ITM , but a straight shot up, which I am expecting to be a 100-150% candle on the 4 hour chart is what I'm waiting to see. The -30% dip was erased in a matter of hours and we managed to close above $50. There is really no sign of exhaustion in the trend, despite the RSI being high. The RSI will always be high in a bull trend. This is the reason why I do not trade based off of RSI and other lagging indicators anymore. To me, price action is king. We are still consolidating what is and will be a powerful run to the upside.
As you can see, this is how the previous consolidations of $AMC has turned out.
By probability, I am expecting a similar reaction.
What's my next target?
My next target continues to be the $100-120 level. I believe this is where we will see the strongest reaction. We either see the biggest retrace OR we could see a massive continuation to the long awaited short squeeze, much like GME did in February. So far, we are following a very similar path. The question is, how long more can the hedge funds who have big bearish bets on this stock, continue to stay solvent?
As you can see, this is how the previous consolidations of $AMC has turned out.
By probability, I am expecting a similar reaction.
What's my next target?
My next target continues to be the $100-120 level. I believe this is where we will see the strongest reaction. We either see the biggest retrace OR we could see a massive continuation to the long awaited short squeeze, much like GME did in February. So far, we are following a very similar path. The question is, how long more can the hedge funds who have big bearish bets on this stock, continue to stay solvent?
Comment:
At this point, it's tough to pinpoint where the bottom of this symmetrical triangle might be. I am pretty confident that we are near or close to the bottom before another big bounce back up. I believe $100 calls will be profitable and I am looking to buy some call options on Monday open.