AMC stock yielded more than +3,000% gains last year when the stock surged to $72 per share.
Is a new all-time high on the horizon?
AMC Entertainment stock has been trading lower since the stock split occurred, but both AMC and APE shares continue to slide.
In a recent YouTube video on my channel, I touched topic on an indicator I use when day trading called the TTM Squeeze indicator.
It tracks and signals strong upcoming momentum on both the up and downside, and I’ve been keeping a close eye out on AMC’s weekly timeframe.
This same indicator confirms the rally up to $72 per share last year as well as the entire downtrend we’ve seen since.
Here’s what it’s showing may come next.
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AMC TTM Squeeze indicator
I gave a quick 6-minute introduction to AMC’s TTM squeeze indicator on my channel last week; you may watch it below in case you missed it.
But I’m going to be publishing a brand-new video updating the community where AMC stands and what we can expect moving forward based on this indicator, later this week.
Be sure to subscribe to the channel and opt in for notification so you do not miss it when it comes out.
In this article I want to go over the possible BIG rally that may lie ahead for AMC Entertainment stock given the circumstances of specific factors.
One of the biggest being momentum.
AMC saw gains upwards of +3,000% last year when retail investors purchased the stock en masse, which snowballed into FOMO from more retail investors and even institutions.
The reason it worked was because AMC had a high short interest and institutions gained confidence in the opportunity as investors piled in to squeeze short sellers from their short positions.
AMC’s short interest dropped from 23% to 20% before it began to move up.
The stock gained momentum when the short interest further dropped to 14% before picking back up this year.
And luckily for retail investors, AMC’s current reported short interest is at 21.30%.
What’s it going to take for AMC to surge again?
It’s going to require retail momentum and institutional investor confidence for AMC to surge like it did last year.
This bullish momentum is what triggered a small percentage of short sellers to close their short positions, further fueling the rally.
If AMC’s TTM Squeeze indicator has a complete transition from bearish momentum to bullish momentum, then AMC stock will be taking its first steps towards another massive swing this year.
I will be going over the indicator later this week on my channel for the weekly timeframe update.
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