I am looking for price action to come down near where I have placed 2 orange boxes for potential entries for future prospects of AMC. If people (WSB) manage to squeeze AMC harder a second time, there's a chance it never even comes down to where I anticipate it but I feel it will be very likely for it to keep crashing since the crazy peak, and maybe return to baseline/normalcy around $1 to $4.
A good entry might be found anywhere from $2.00 to $4.81 in my opinion, but it really depends on if WSB actually pulls off a second squeeze for how long it would take to realize profits on the next run. If its truly returning to baseline, $2.13 and lower should be expected, I think 57 cents would be the absolute most drastic possible.
I've placed a couple white trend lines just to see if any of it correlates with a path, but I've also scribbled the green, orange, and red brush lines for other potential levels I can see price coming to at those times. No idea which path will actually happen if any of it is even right, just watching closely for now.
Related idea attached below:
Thanks for tuning in :) Disclaimer, anyone in the trade needs to do their own due diligence and decide what is right for YOU. My charts can be wrong at any time and it's very important that you have your own strategies and plans in place. I run this channel for my own educational purposes of learning to trade, and I will never be 100% right, so please do not let me confirm any bias for you! (Dangerous to do so, stay safe and remember the basics & rules of risk assessment.) Expect the unexpected and happy trading!
Your post came a little too late... Last February (2020) the AMC stock was trading at $18, with all the crushing debt that has been since relieved. The stock will bounce back at the end of the year or next year when the cinemas will open again. This is the biggest movie chain in the US not a penny stock of a worthless company and nobody is going to demolish the movie theaters. It could return to being a $30-40 stock once the economy opens.
lauer1480
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you believe a company that no longer has debt and was never valued under a dollar will now be a penny stock? Okay......
Hambooger
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@lauer1480 it's almost like everyone was lied to about what effects x, y, or z would have
Patreus75
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Thanks for the info. Tell me if Im wrong because I value constructive critisism, but we cannot play nor even begin to predict these stocks with traditional methods... If short squeezes or unprecidented trading phenomon were even somewhat predictable then it wouldnt be hard, nor would there be close to the reward for the brave and patient traders that win out bigger than others. I think the problem is that people are less likely to diversify their portfolio when they are new or simply trading becuase of the GME/AMC/NOKIA surge. Notice the uniformity between GME AND AMC today... Unprecidented. Huge risk/reward factor? Maybe.
bossballer41
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@Patreus75, 100% agreed. It seems silly to even analyze these stocks with any traditional methods until the ballyhoo subsides.
LlamaChips
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@bossballer41, Excellent usage of the term ballyhoo.
bossballer41
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@LlamaChips, Lol not often I get a chance to use it