Reasons I Went Long
I typically do not invest in a company for the product or service that they provide. I do however trade off of technical trends and price levels very often. Here is an example below.
$AMC Entertainment(AMC.US$
$AMC Entertainment(AMC.US$
For the record I believe AMC is a little overpriced for a very long term investment. But the Apes just keep this thing trending and make it very tradable. So I regularly swing trade this ticker. Here is a little walkthrough of what was going on in my head which led me to entering into a couple long positions on AMC. Basically the charts have a solid technical set up which led me into a swing trade.
In the chart directly above you can see the volume for the one minute candles. The volume was increasing drastically before market close. Then it just skyrocketed after hours as you can see. These are some of the biggest one minute volume candles since last march when AMC had a massive rally as you can see in the chart below. The chart below also illustrates the massive daily volume candle spiking well above the average daily volume for the past month or so. This is almost surely due to the repositioning on the first week of the second half of the year. There were some mentions on Wall Street Bets today as well. Other than the technical set up seen on the last two charts I can not find any other reason why the volume skyrocketed into close on this ticker. I trade off of the technical levels most of the time so I was watching and waiting on this one to bounce the past couple weeks. I believe today was the day after seeing that spike in vol.
Below you can see the technical set up. This is the main reason I entered the trade. As you can see AMC's share price is resting on top of support of the very short term price channel for about two weeks. You can see how the price would bounce off of this very short term support in the past. There is also a slight wedge formation if you look at a slightly longer time horizon. If we dip below this very short term support of the price channel seen below then I will be cutting some of my losses for an average down in the near future. As long as we stay above this support I will hold my position until we get a sharp move up.
Below are some possible resistance levels that I will be looking out for. I believe we may see some friction at these levels and a possible consolidations or rejections. If we rocket through these levels then I will not even be worried as AMC has been following a very long term downward trending price channel. If and when it reaches the resistance of the long term price channel I will start taking profit on my shares. That trend line is highlighted by the purple line on top of the chart directly below. I also have a long call option expiring next month that I will sell after the first quick move up that we get on AMC before the profit takers can bring my premium down. I might even consider minimizing my position on the way up near these levels.
You can check out how the sentiment changes week by week with the changing stock price through the weekly votes seen below. So how do you think AMC's price will move next week? Will it break down below the trending support level that has been holding up up for a few months? Will the price remain stagnant with very little movement next week? Or will we see a strong up tick in price towards the 16 dollar level?
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Trade the trends via technical, fundamental, and macro analysis. Day Trades, swing trades, and long-term investments.
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Dons hobby : If it has been sitting on this resistance I would think there would have to be some kind of reason to push it up or down ?
Dons hobby : I don't think there are enough sales to push it up to the $16 dollar range and I don't think sitting where is has been for a couple weeks consolidating it will not go down that's why I voted stagnant
SpyderCallOP Dons hobby: I was looking for a reason it jumped today at close. The only thing I could find was that it was getting pumped on social media today like it regularly does on wall street bets and other profiles
SpyderCallOP Dons hobby: im in it for a swing. i might get stopped out at open monday. we will see. Im just tring to make a little short term cash on the cheap option but it must move quick and soon for that risky option to play out. if the price remains stagnant next week then I will lose money for sure on the option
Dons hobby : I have a question how can AMC be shorted 208% and retail owned 80% of the stock that math just doesn't line up in Any way am I right other than some real shady shit with AMC again. I have been on here for a little over 6 months and ever since I have been on MooMoo AMC has been fucked over in so many different ways that I didn't even know could be done. No shares left for short selling and over night there are 2.5 million or 5.8 million appear how does that happen, I know it's some shady shit but how come they can pull something like that off. I mean that's just in your face we don't like our position so we will basically issue more shares ?
Dons hobby SpyderCallOP: How much would you make if it would shoot up to 20 ?
Dons hobby SpyderCallOP: I had enough for 100 got in just before after market closed
SpyderCallOP Dons hobby: yes it does not make any sense. if somebody is willing to pay for any financial instrument then they will sell it to us. The way the market is supposed to work is when there is that many people shorting the stock then the short contracts should be getting less valuable due to the supply. They are manipulating demand to keep the prices high. its ridiculous and its all rigged so the big investment banks dont lose too much. thank the lobbyist for that
Dons hobby SpyderCallOP: 1000% agree
102640653 : I’ve seen this in morning today . Even riot have volume surge last minute, Mara too,
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