Is AMC Stock Squeezing within a few days?
Updated: Sep 11, 2021
According to few analysts, AMC Stock is in the buying territory when you look at the technical analysis of the chart. In this article, the argument is not about the fundamental analysis of meme stock AMC but the technical analysis.
The technical analysis focuses on the short-term price fluctuation of the stock at the given time. Traders look into a support level, residence level, patterns, the volume of trade, and more to make a trading decision.
In the case of AMC stock, traders have been looking for a squeeze since June 2, 2021. Not only that AMC stock price went from $32.04 to $72.62 in one day, which was a 126.26% increase. But It is also essential to point out that AMC's Stock price went from 13.68 to 72.62 in 7 days.
Since that epic gain, the stock price declined from $72.62 to $28.7 between June 2, 2021, to August 5, 2021. This was a 60.47% decrease from the top. For the last six months, AMC has been the top 10 most trading companies in the US along with AAPL, and the meme stock SNDL. AMC stock's average 100 days trading volume is 140 882 809.
From July 15, 2021, to August 20, 2021, AMC Stock rejected the support level between $28 and $34. And from August 20, 2021, to September 9, 2021, AMC Stock made an uptrend price movement to $51. For AMC traders, It will be a positive outlook if AMC Stock breaks the $55 price level. The $55 price level will retest the residence level of Jul 6, 2021.
AMC Stock already rejected the support level of $45 and is now testing the residence level of $55. The stock is also above its 50- and 100-days moving average.
The stock closed at 50.16 with 3.36% on Friday 9, September 2021. All eyes will be on the $55 price level next week. Trading AMC stock is very risky because of the volatility of the stock and the chance of being halted during the session.
Note: The market is unpredictable, involves significant risk, and it is not suitable for all investors. An investor must talk to a financial advisor before any investment. This article reflects only the opinion of the writer and it is not investment advice.