AMC is forming a massive bullish pennant.
The stock had the same pattern months after the push to $20 per share back in January.
Five months later, AMC stock surged up to $72 per share in June.
Well now we’re beginning to recognize this massive bull flag again.
The next leg up will be massive.
Welcome to Franknez.com – I hope everyone has been having an amazing time with the family this holiday season. Today we’re discussing AMC stock.
Let’s get started!
Some of you apes have been wondering whether AMC will squeeze this year or not.
Some are hoping AMC doesn’t squeeze until next year to reduce those capital gains taxes.
How long this bullish pennant will last for is hard to predict.
The last bull flag lasted for five months before it skyrocketed.
This current bull flag is going strong on its fifth month now.
A breakout could technically happen any day.
What Price Will The Breakout Take AMC To?
I’ve stated in previous articles that I believe the next breakout could take AMC well into the low hundreds of dollars per share.
AMC’s share price multiplied five times from $14 to $72 per share.
If we look at the consolidation price of $38-$40 per share and multiply it by five we get approximately $200 per share.
This brief summary is simply based on a repeating factor.
It could be less, or it could be more.
Will This Next Runup Cause Big Shorts To Cover?
I think we could be seeing a much longer play than we anticipated here.
Let’s look at GameStop for a second.
GME stock is trading above $200 per share and still has a high short interest of 10%, meaning big shorts are still very well in this play.
AMC currently has a short interest closer to 16%.
We’ll have to keep an eye on this number to see how much of the float is still being shorted after the next major runup.
Hedge funds shorting AMC stock could cut their losses, entering the new year with a clean slate.
Or they can lose other Michael Jordan’s millions upon millions of dollars.
Do you think hedge funds will cut their losses?
Or will they continue to take a nosedive into the new year?
Let me know your thoughts at the end of the article.
Don’t Sell Yourselves Short
AMC looks as if it’s right on the peak of this bull pennant, right before another massive leg up.
Don’t sell yourselves short now.
This could very well be the last time AMC trades at its current share price, ever.
I reached my number of shares goal a while back, but have added a few shares here and there, you can view my purchases here.
Here’s an example of selling yourself short:
I, along with other apes could have sold our AMC shares at $72 per share.
However, we would be selling ourselves short because of where this third runup could potentially go.
How high will it go?
I’m not certain, but I do know it will be higher than the second run based on its chart pattern.
Only time will tell whether this next leg up causes a chain reaction of short covering.
One Thing Is Certain
This play will require serious patience.
We don’t know whether this play will squeeze shorts similar to how Tesla did or whether it will be a massive domino effect of shorts closing their positions.
Keep an open mind to seeing AMC continuously raising the bottom over and over like Tesla did.
This means there could be a third runup, and a fourth, and a fifth, and so on.
Though most of us would like an instantaneous short squeeze, I believe we should be open to all types of scenarios as to how one can happen.
Don’t Wing It, Have A Plan
I published an article expressing my personal thoughts on an exit strategy guide months ago to prepare apes for when the time comes.
This of course is just my opinion on how to exit your positions safely, having made a lot of money.
The point of the article is to simply have a plan.
When you plan, you will execute better.
Are You Excited For The Next Runup?
I sure am!
Are your family and friends investing in the stock market too?
If they’re not, link them to this step-by-step guide on how they can start.
I created it to save you time on personally walking them through.
With that being said, thank you for reading the blog today.
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Thanks for this Frank👏