Shares of the company AMC have recently gone past $50 for the first time since July. The Wall Street group looks at what could be next for the AMC “meme” stock below.
AMC stock succeeded in breaking through the $50 area for the first time since the month of July – although it did not hold this level for long. Unknown to many investors, shares of the theater company have been getting near all-time highs over the previous month.
The recent drive higher in the share price can be applauded by AMC shareholders. To these meme investors, their investment thesis is very dependent on momentum increasing until bears get squeezed from their trades, and this trend is doing well as of late.
What the technicals report
AMC supporters like to buy and hold the stock no matter what. Even so, we believe that it is important for people to understand resistance levels – at least to keep check if the direction of AMC is going with expectations.
Pivot points, for example, reveal the moment that sentiment changes from bearish to bullish, or in the opposite direction. Currently, Fibonacci and classic analysis show a $41 pivot point. This target has proven to be a great entry point over the previous month.
Of course, there is not a guarantee that these pivot prices will work in predicting price moves in the future. The data should be taken into account along with other factors.
FOMO and having patience
For technical signs and short interest data to cause AMC stock to go higher, bullish AMC supporter sentiment is critical. The fear of missing out (or FOMO as people call it) can be a very powerful thing to enable the mother of all short squeezes (or MOASS).
In any case, remember that AMC is still very volatile (or maybe you should call it “risky”) and patience is important in trying to corner shorts into covering their bets.
AMC stock hit through $50 and short interest is still elevated. What do you believe will happen next? Twitter users make their views known with this poll:
— Wall Street Memes (@WStreetMemes) September 15, 2021
Author: Scott Dowdy