AMC Bullish Divergence Potential, but watch the news.

Long

AMC Entertainment (NYSE:AMC)

Updated

NYSE:AMC AMC Entertainment

trendanalysis chartpattern indicator amc nasdaq dow dowjones divergence bullishdivergence trendreversal trendreversalpattern calloptions

AMC

DOW

DJI

NYA

All,

I am following AMC rather closely, but wanted to post again to cover something I see happening. I am seeing a bullish divergence on the weekly and along with that it has tested support where it current is 3 times. However, in my previous post there are some very strong resistance lines. I can see it making a decent run to $2.40-$3.15. Like I said thought if you are not buying options I think this is a great buy. I highly doubt anyone will let AMC go bankrupt. I actually stand by AMC as a movie, buff nerd and I really think most people will also. Sure they may over charge for popcorn LOL. I think before they go bankrupt they would sell to someone or a big name bank like Chase/Wells Fargo which would not be a bad thing either or some sort of deal. It's a strong industry, maybe not worth as much as airlines or things of that nature, but just my opinion. Not saying it can't drop lower but come 2021 on a long or long term option you should see profits IMO.

Reasons to buy:
-What I said above
-Oversold on basically every timeframe Daily - Monthly
-Bullish divergence possible about to happen unless some crazy virus news comes out and busineses are shut down till July.
-Coronavirus checks are coming in first wave people may be recouping money and trying to invest in the market to make up for losses
-Even if going "bankrupt", they are not the same. A company going bankrupt to due to the coronavirus is perfectly fine IMO in a company like AMC. They literally only make money from people coming in. So any investor or bank will come in and buy AMC and it will take off again seeing as virus is at fault. Also the government can bail them out.
-Businesses will be getting relief wave 1-2 soon

Reasons to wait or buy a different stock:
-News they could go bankrupt if they stay closed for too long (kind of the case for every company)
-Virus timeline is uncertain (could drop 1-2 range)
-Volume may not be there with the news above so even if it does go up it may be in a drastically lower volume and take longer for a while to pump
-Not a long term buyer month+ and want to make other investments for quicker profits.

Comment:

Overall view

Comment:

Made quit a bit on my call option and sold short ;)

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.