AMC in Accumulation zonewait for channel breakout with good volume we will see awesome move on upside.
AMC trade ideas
AMC Possible Continuation week of 11/29We have a breakout of the long term wedge and while that should have been enough to draw people in and propel the next leg up, volume lacked with an astounding 70% off-exchange volume percentage average for the week. Algorithms appear to be running the stock and I believe we will be repeating a breakout similar to the late August run to $52, in the coming trading days. Just an observation, NFA, I am long and holding with Diamond Hands.
AMC looks bullish1. price contraction is building up. ( wedge pattern )
2.inflation and bond yield event has been observed by the market.( bad times are gone)
3. festive season is about to come. (+ve for entertainment industry)
4. 100 EMA support is visible as seen is past.
one should wait for the breakout.
AMC price action analysisAMC's stock price corrected drastically after reaching all-time highs.
The bearish shark pattern correction seems to be completed and the hurdle is to break the trendline with huge volumes bouncing off of the demand zone.
The idea is neutral because there is a chance for collapse also. The breakdown below the demand zone completes descending triangle pattern. For the short covering move, it must cross and sustain the 48 price mark.
Patience is the key here. Wait for the confirmations to go long or short. For both long and short positions, targets are mentioned on the chart. Consider exiting at cost.
Happy trading.
This is not investment advice, Please consult your financial advisor before consulting.
Using the Trend-Based Fib Extension ToolThe Fibonacci ratios are widely used among traders to help identify potential areas of reversal in the movement of price action.
The Trend-based Fibonacci Extension tool utilizes three points on a previously identified trend in order to draw the Fib ratios on the chart.
In the chart above, price was rejected twice forming a double top which is a fairly strong reversal pattern. To help identify potential areas of support and resistance we have drawn a Trend-Based Fib Extension.
Using the double top patterns High, Low, and High as the three points for the Trend-Based Fib Extension, the Fibonacci ratios are drawn on the chart.
In this example, you can see that price action respected these levels very well until finding strong support at a potential bottom that corresponds with the 200% extension level.
But, notice the region in the yellow box on this chart. There seems to be no identified areas where the Fibonacci ratios show support or resistance.
While retrospectively we can tell that the area of support found at ~ $12 (141.4%) in mid-November 2017 did not produce a new bull market. At the time there was a potential reversal at that region resulting in higher highs and therefore we could have pulled a NEW Trend-Based Fib Extension as shown below.
As the new Trend-Based Fib Extension is identifying areas of a new uptrend, we see that these ares are shown in a way that they were not in the previously drawn Trend-Based Fib Extension.
However, price was rejected at the 61.8% level and continued downward until the 0% extension level was broken, thus invalidating this Trend-Based Fib Extension.
While the upward price trend did not continue, there was a local high that was made and thus could be utilized to create another Trend-Based Fib Extension to further identify areas of reversal for the continuing downtrend as shown below.
Looking at this newly created Trend-Based Fib Extension, we see that the areas moving down to the 78.6% extension level are very well respected, at which time the price found support, creating a triple bottom reversal pattern.
It is interesting to note that the 78.6% extension on this Trend-Based Fib Extension pull is at $1.82, and the 200% extension level from our first Trend-Based Fib Extension pull was at $1.95, a mere $0.13 difference in price.
This area where the two levels of a Trend-Based Fib Extension or Retracement group together is know as a Fib cluster and indicates areas of strong support or resistance.
With price forming a triple bottom and reversing from this level, is it possible that this is the bottom of this downtrend?
Could a new Trend-Based Fib Extension now be pulled from a new Low/High/Low to identify potential areas of support and resistance?
Give it a try and see what you find!
AMC Long Idea Cup and Handle with Fib RetracementsAMC Consolidation on lower time frames has developed a nice Cup and handle Pattern on the Daily Chart. Looking to hold above the 0.5 for confirmation to see the 0.618 @ $13.31. Lots of options to keep an eye on this coming week with the sentiment leaning bullish. There is also news of Los Angeles AMC theaters opening Monday 3/15/2021, which can give AMC a push higher. AMC beyond the noise has risen a 100% in price within the last 30 day period. I would be looking for volume and price action Monday with a push higher. Dips will come but the potential long idea looks good. DD is important but not always factual. Please do not take this as trading advice, just my analysis based on chart pattern. Thank You and all feed back is welcome!
