The past week and a half has been great for AMC. But would you consider this bullish?
After a strong rally that started last week, AMC's price action has reached its first moment of truth. Will this rally continue? Or was this just a technical bounce before the bearishness continues?
You can see in the chart below how AMC has exhibited a very strong performance over the past week and a half. All of this has been happening while the major indices have been struggling to gain any type of upward traction.
You can see how this rally followed extreme overslold conditions on RSI, so this could be just a small technical bounce to cool off the meltdown. But there are a few bullish aspects to the technical picture that make me think twice about this potential rally.
MACD is showing signs of a possible bullish divergence as the price action is making lower lows while MACD is printing higher lows. We also just experienced a bullish cross on the MACD indicator.
Things are looking more bullish than they have been for several weeks based on the technical indicators. But based on the price action, personally, I would need to see more upside before I would call out any bullishness.
In order for me to feel more bullish, I need to see RSI climb above its 50 value, which would put it in bullish territory. If this happens very soon, then that would coincide with the price action breaking out above its nearest resistance level that I have highlighted on the chart. These would be quite bullish developments in the very short-term picture.
Looking out towards the longer timeframes, we need to see higher lows and higher highs being printed on the chart for any official uptrend to be considered. Before any higher high can get confirmation on the longer timeframes, we need to see the price climb completely above the previous basing pattern that previously held up the price of AMC shares until the middle of last month before the meltdown.
As of right now, the very short-term technicals are improving. But the longer timeframes still look pretty bad. Once we see some higher lows and higher highs, then maybe the picture might look a bit more bullish for AMC.
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Stock_Drift : I don’t think it’s going moon but I think it makes another run this week past $3.50.
Methodman10 : run past 3.50 to near 4. consolidation then to 7-8.50
SpyderCallOP Stock_Drift: That looks very possible on the current trajectory
Stock_Drift SpyderCallOP: That’s what I based my opinion from via studying it from the ORTEX app.
Stock_Drift : Bullish.
SpyderCallOP Stock_Drift: I remember you posting some stuff about this ORTEX app.
Stock_Drift SpyderCallOP: I’ve been liking it. The side bar is loaded with all kinds of stuff
DrWright2021 : bankruptcy is on the way
SpyderCallOP DrWright2021: That is how I feel about the situation. Possibly a buyout, but then again, I doubt anybody would want to take on AMC's debt load.