AMC is about to squeeze; I mean we’ve heard it all year.
Catalysts have proven to provide false hopes time and time again.
However, there’s one piece of the puzzle you cannot deny, and it’s happening right now.
If you’ve been following my latest blog articles and videos on the channel, you know I’m referring to a special indicator I personally use.
The TTM Squeeze indicator – it signals a major shift in momentum whether it’s bearish or bullish.
The signal just transitioned from bearish momentum to the beginning cycle of what could be massive bullish price action for AMC Entertainment.
I’ve been watching the weekly timeframe on AMC to identify its macro trajectory.
And it’s looking very good.
Let’s break it down together.
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Let’s dive right into it!
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TTM Squeeze transition officially confirmed
AMC has officially transitioned from bearish momentum to bullish momentum on the TTM Squeeze indicator.
The chart shown above shows three green momentum candles gradually growing, signaling big price action lies ahead.
Last week I went over AMC’s history correlating its price action with the indicator on my YouTube channel.
And we can see just how accurate this data is.
If you missed that video, you may watch it below.
In the beginning of the year of 2021, AMC’s price action took off as retail investors began to buy the stock in bulk.
That momentum is captured on the TTM Squeeze indicator.
The indicator’s momentum candles kept growing signaling AMC’s price action was not done running yet.
Eventually the momentum signal began to give ‘sell’ warnings after reaching its all-time high, indicating momentum was beginning to dissipate.
This is where we slowly see the TTM squeeze indicator transition from bullish momentum to bearish momentum (red) candles, and AMC’s price action gradually plummet.
After more than a year of downtrend, selling momentum is no longer what it was, and we can see it on the charts.
In order for AMC to have a clean rebound, these momentum candles will have to gradually get larger and larger.
If retail investors are unable to sustain this growth, then it’s very possible sellers will begin to take over again.
But because we are seeing these candles grow every week, it’s a great indication the stock is on track for big growth over the long haul.
Is AMC a buy?
According to AMC’s TTM Squeeze indicator, it’s a screaming buy.
The signal is showing AMC is on trajectory for larger price action on the weekly timeframe.
AMC has had a strong level of support in the high $8 to low $9 levels with many anticipating the stock has already hit its bottom.
But I’m curious to know what you think, leave a comment down below.
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