AMC: Another target hit! What's next?

27 thg 4, 2021

Hello traders and investors! Let’s see how AMC is doing today.

In our last study, we discussed the Triangle pattern, along with the targets and strategies to use here, and AMC did exactly what it was supposed to do. If you missed our previous study, the link is below.

First, in the 1h chart we had an upwards breakout from the Triangle and it hit the next target at the green line ($ 11.52), and it even defeated it, as we discussed in our last study.

Now, the green line is supposed to work as a support in the short-term, following the Principle of Polarity. If the green line doesn’t hold the price in the short-term, then the 21 ema might do the work. I’m not considering that AMC will crash again because we are in a short-term bull trend, and we have higher highs/lows in the 1h chart. In this scenario, pullbacks are just opportunities to buy.

What’s more, it is important to notice that AMC did a breakout from the Triangle by doing a gap, which in turn becomes a Breakaway Gap. The daily chart will offer us more clues:



The stock is breaking the green line, which is good, and it seems the volume is finally starting to increase as well. This can create a new bullish leg, and the next target is the blue line at $ 14.54.

The support levels mentioned in the 1h chart are more than enough to hold the price in the short-term, but in the worst-case scenario, AMC would drop to its 21 ema in the daily chart, which is almost the same point the Breakaway Gap in the 1h chart is.

If AMC drops, even the worst-case scenario wouldn’t be too much of a problem, as the bias would still be slightly bullish. But in order to make it fly again, AMC must hold itself above the green line.

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Thank you very much!