AMC stock has found a new floor in the $30 price range. AMC’s previous floor was $5 before multiplying 14 times up to $70. Will AMC repeat this pattern? This would put AMC Entertainment stock roughly around $420 per share. And that’s without a short squeeze.
A lot of regulation is also being put into place. While the community might be taking this information with a grain of salt, we must ensure government bodies do their job. August 23rd is an important date.
Welcome to Franknez.com – today I want to discuss AMC stock and August predictions based on the data at hand.
Lets get started!
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AMC Community Fights For Justice
The AMC community has been fighting for justice since the beginning of this year when short sellers began to manipulate AMC’s stock price. The use of naked shorting has been exposed publicly thanks to the community.
Personalities such as Charles V. Payne (FOX) and Melissa Lee (CNBC) have been strong voices outside the community regarding the use of synthetic shares to drive the stock price down.
Melissa Lee recently came out about the SEC finally looking into dark pools. She shared an interview with SEC Chairman, Gary Gensler, regarding this manipulation.
While it might sometimes feel like we’re going around in circles, take the time to zoom out and realize change is actually happening right now. There was a point where no one was listening to us. So, if you’re new to the community, consider yourselves fortunate! We already paved the wave.
New Apes, Are You Negative In AMC?
If you’re a new ape who got in this movement as the stock was climbing, you’ve collected unrealized losses. However, this is just on paper.
You haven’t lost anything unless you cashed in your losses. Seasoned apes in the community faced the same reality many months ago so you’re not alone.
When AMC jumped to $20 back in January, majority of us got in as the stock was coming back down thinking it would go up. I purchased my first shares at $14 only for the stock price to plunge down to $5. I was negative $9k! So, you’re not alone, we’ve all been there.
Yeah some people sold, but those who held are now up thousands to tens of thousands of dollars. But we still hold. And you already know why. Shorts have not covered their positions which means you will be profiting very soon as well.
AMC stock seems to have reached a new bottom which is great for any retail investor looking to increase their position before we begin seeing higher highs and higher lows again.
When the stock originally came back down to $5, the community to advantage of the stock’s price. It was the perfect opportunity to increase our number of shares. The same scenario is taking place at the moment.
It’s The Number Of Shares That Counts, Not The Price
I’ve taken note that some apes in the community are waiting for AMC’s stock price to go lower so they can add to their positions. While adding to your position at a low share price plays heavily in your favor, it’s the number of shares that ultimately matters.
I had purchased 16 additional shares of AMC stock last week and one of my brothers had commented saying ‘too bad it’s only 16 shares’. To which my response was, those 16 shares at $1,000 per piece is already $16k. A $500 investment may easily convert to $16k during a squeeze (example).
If you’re a Patron or Discord member you saw I purchased an additional 29 shares today. By the way, if you’re interested in what other plays I’m buying, I update my portfolio on Patreon every month.
So, if you’re waiting for AMC to go lower so you can buy more shares, you’re going to miss this discount. AMC is demonstrating strong levels of support in the $33 range.
Breaking Level of Resistance
Trey’s Trades has predicted AMC would either drop down to a level of resistance in the $25 range, or take on a more bullish approach. We didn’t see this drop which means the technical data now points towards sustained levels of consolidation.
What some apes in the community do not understand is that barcoding, or consolidation, is actually healthier than continuous declines. We could very well see AMC stock break new levels of resistance and consolidate in an upwards trend all month leading to the short squeeze.
This goes back to when we barcoded at $5. The stock eventually pushed all the way to $70. Could we see this type of multiplier in August? Absolutely.
AMC has the community to see this type of price action come to fruition. We’ve uncovered that although fundamentals may have influenced a stock price before, it’s truly based on the narrative of the shareholder and its community behind the company that drives the price.
NSCC-2021-010 Filing Confirmed, August 23rd
Proposal NSCC-2021-010 essentially prohibits the use of naked shorting and FTDs in the market. In this letter, FINRA confirms to rule this filing on August 23rd, page 3.
This leaves AMC with 6 trading days for the month of August with runway to follow its natural course up, without manipulation from short sellers.
Shorts have the option to cover their positions before another momentum upswing, or face bigger losses than AMC’s first runup. Hedge funds lost billions of dollars during the climb to $70.
AMC stock will continue to reach higher highs and higher lows, raising new bottoms as long as retail investors continue to buy and hold the stock.
Short sellers had the opportunity to close their positions at $5 and missed it. They now have the opportunity to close at $33 which means we could very well see AMC squeeze in August.
If they prolong the inevitable, AMC’s new bottom could very well be in the $200 range, given that chart patterns repeat themselves. I got to this number by multiplying AMC’s new bottom of $33 by 6. The common denominator from the stock’s previous floor.
What If Hedge Funds Don’t Close Their Positions In August?
If hedge funds don’t close their positions in August then regulations will get tighter on their practices. Margin requirements will continue to increase for short sellers shorting both AMC and GME stock.
Charles Schwab is a massive AMC shareholder and is in the ‘Top 10 Owners of AMC Entertainment Hodlings Inc’. They’ve been increasing their position in AMC all year. They are reported to hold a whopping 3.5 million shares in AMC stock.
Charles Schwab, like retail investors, wants to make money from this play. We could very well see the broker raise margin requirements or even liquidate positions without notice.
Big institutions such as Vanguard and BlackRock also continue to increase their positions. AMC entertainment stock is not a dead freaking cat. Institutions have noticed this once in a lifetime opportunity too.
They’re buying and holding the stock; waiting.
House Democrats Demand Tougher Rules
If you have not seen this yet, there’s a push by Democrats to broaden consequences for hedge funds.
“Lawmakers are considering imposing federal oversight on large family offices like Archegos and banning the controversial practice of market makers such as Citadel Securities paying Robinhood Market and other brokerages to execute investors’ trades, a confidential note recently sent to Democratic members of the panel shows”.
So even if short sellers don’t close their positions in AMC stock, outside forces are working together to prevent hedge funds from having too much power. This will play in the retail investors favor and give the stock runway to continue going up.
AMC Prediction For August
AMC stock will break the $33 level of resistance and channel an upwards trend leading to September if it does not squeeze this month. August could very well be the month when AMC squeezes.
My brothers and I have been adding to our portfolios just to play it safe. If this is the last time we will see AMC at these levels then we’re certainly going to take advantage of the price.
And while shorts keep increasing their short positions, it’s only a matter of time before they get halted from doing so, and are restricted the power to continue overleveraging their positions.
What I can tell you though is hedge funds are about to face the biggest margin call in history. Whether it’s in August or not.
What does your intuition tell you?
Let me know in the comment section below what your intuition tells you. You have the data at hand, you’ve researched just about everything there is to know about AMC stock. Do you think AMC will squeeze this month? What’s your AMC stock prediction?
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Read: AMC Entertainment To Accept Bitcoin As Online Payment
Great explanation! Thank you for your transparency, we appreciate it. God bless.
Thanks for being here Mauro!
Can you comment on the debt AMC has issued in bonds with a variety of interest rates and maturity dates that some in the establishment investment communities are saying could prevent any squeeze?
Awesome info! Personally I think we are in for a fight. The hedgies won’t go easy. No matter the cost. I think it keeps getting worse and the floor gets higher. I do think it happens this year though.
To the moon!
To the moon brother – thanks for commenting
Why haven’t all Apes ordered their stock delivered to them. No one can borrow your shares when they are in your safety deposit box or dresser drawer. It may cost$25-$30 to get delivery. but I’m down $16,000 now and paying $30 is a small price to pay.
What do you mean, stocks delivered to you???
He means like physically owning your shares by having the certificates sent (or delivered) to you or something to that effect.
They dont issue physical shares