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AMC Stock Price: Possible Pennant Suggests More Continuation

The volatility in the traditional financial markets has decreased significantly in the last trading days, but not on the so-called meme-stocks. The AMC stock price just had a tremendous rally yesterday, squeezing higher on a combination of call options buying and short-squeezing.

AMC is just the stock replica of a cryptocurrency, as retail traders try to speculate on it by aggressively accumulating via a combination of various financial products. A delta squeeze coupled with a gamma squeeze is enough to send the price of any asset “to the moon,” and so AMC has risen.

At the current valuation, the AMC stock price makes no sense. After all, it has nothing to do with the pandemic because in 2019, one year before the COVID-19 pandemic, AMC lost about $190 million on its business.

Yet, the price action looks bullish, at least if we interpret the technical picture solely. However, before trading a meme stock like the AMC, traders should be warned that the market can easily return on nothing at all. The price action is purely driven by massive, unidirectional bets.

AMC Technical Analysis

The rise from the minimum levels in the AMC was powerful enough that the market formed two continuation patterns so far – a symmetrical triangle and a bullish flag. Currently, a possible pennant is in the cards, and a move above $70 should trigger more upside. Hence, bulls may want to wait for the price to print $70 before going long with a stop at $58 and a take-profit at $100.

AMC Stock Price Forecast

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