Here’s What We Can Expect In The Next Days (AMC)

It is finally the last week of August. AMC has been consolidating in the low $30 range all month. Yesterday (8.23), short sellers lost $270 million according to Ortex. Imagine how much more they’re going to continue to lose as the stock price continues to surge.

Proposal NSCC-2021-010 should be going into effect moving forward. More on that later.

Welcome to Franknez.com – yesterday was a great trading day for AMC Entertainment. It’s this type of momentum that’s going to allow us to break above $40 and beyond.

Lets get started!

The Last Chance At $30

In a recent Trey’s Trades video, Trey goes over the technical analysis that will break this $30 range we’ve been trading at. I was able to identify AMC’s new bottom weeks ago simply from the chart patterns.

In his video, Trey discusses that right now could be a great time to buy with less risk than before. And I agree.

Everyone is entitled to their own financial decisions, but I do believe we are about to see the $30-some dollar range for the last time. Similar to when we saw $5, $9, & $14 for the last time.

Those of you who bulked up on the stock at such a low price were able to exponentially increase your positions in AMC stock. Well, it looks like we now have this opportunity again.

And if you’re curious, I’ve been buying the stock for 7 months in a row. What can I say, I like the stock. But seriously, how do some not take advantage of these prices. We literally own AMC..

What If I Can’t Afford The Stock Anymore?

If you cannot afford to buy AMC anymore don’t worry, ape. Keep hodling strong. While AMC’s bottom is now significantly higher than what it was early this year, it is still certainly affordable for most.

Especially if you look at it as a clean slate, right? Think about it, what if AMC was never $5 per share, or $9. But rather, $30.

That’s what I’m referring to.

Momentum is beginning to pick up again. I don’t think AMC will be seeing the $30 range any time soon, which is why I’ve made it my responsibility to load up during this time of consolidation.

So, if you can afford to add to your position, this is a great time to do so.

We’re Beginning To See A Bounce

We tested $38 last week and we tested it again yesterday (8.23). Short sellers continue to short AMC stock regardless of so much bullish sentiment in the market.

I guess you can say it’s sparred sort of a battle now. At this point neither side wants to give up. Unfortunately for short sellers, we have the higher ground.

With margin requirements lifting for short sellers, they must keep feeding cash into their margin accounts while retail investors simply have to hold the stock.

We just recently saw Citadel is pulling 500,000,000 from Melvin Capital as well. So, what does this tell you? Hedge funds are beginning to liquidate more assets. But this case feels like it’s more so closer to home right? Their narrative has clearly changed if it’s come to this.

Short sellers are losing millions of dollars with each day that passes. This is why we’re going to begin to see a bounce very very soon. Although AMC’s short interest is extremely high, the small percentage that has gone down could be small short positions backing out from the play.

At least according to Trey, but this makes sense if you think about it. Either short sellers begin to cover now, or continue to bleed out slowly as we gain momentum back.

We’ve Seen This Consolidation Phase Before

When predicting AMC’s next move through technical analysis, we can see that we’ve seen this consolidation before. AMC consolidated in the $9 for quite some time before eventually breaking past $14. What came after this long consolidation period was the massive move up to $70 per share.

Chart patterns tend to repeat themselves and we can see this is about to happen with AMC once again.

The question is, will short sellers close their positions and end this once and for all, or will they continue to suffer staggering losses as apes continue to raise the floor?

One thing is certain, AMC is about to break the level of resistance. And if you bought the stock while it was trading above today’s current share price; well, you’re about to finally start seeing gains on paper.

Those Who Sold At $70

Those who sold at $70 per share probably won’t be reading this. But we know they will not reap the rewards of what’s to come next. If you were the 1% who was able to sell and double up, that’s different.

The community is about to start seeing big gains again, but refrain from selling. Sell, and we’ll be back in the $30s.

This happened when we were consolidating in the $9 range. Every time we would reach $14, Wanda Group would sell. This would then bring the stock price back down to resistant levels.

If another massive selloff takes place at $70 (or less) then the community will only stun the momentum.

Lets give the world a show, let AMC run up.

It’s Too Early To Think Exit Strategy, For Now

Unless you’re planning on cashing out a few thousand, ten thousand, or even your very first one hundred thousand dollars, it’s too early to think about an exit strategy.

I wrote an exit strategy article that you can read here, but do it for the purpose of bookmarking it for when AMC has squeezed.

I personally wouldn’t bark up this tree until shorts have covered their positions. This of course is just my sentiment. You are free to do as you please as this is not financial advice but only my opinion.

The article talks about setting a goal for yourself and basically selling once you’ve met that goal. It’s a great read to get an idea of what life will be like when you’re ready to cash in.

But for now, I think it’s too early and I know the ape community would agree.

Expect The Unexpected

Keep an open mind. Some apes don’t think a squeeze will happen soon, others think breaking the level of resistance will take longer. Be open to all of it.

Keep in mind it’s easier for shorts to close their positions now then what it will be as AMC’s stock price begins to surge past $40, $50, and so on. And although the technical setup at the moment shows we can break this level of resistance within the next few days, anything can happen.

What’s important and what hasn’t changed is the one true narrative of this journey. Buying and hodling.

Despite stock market news, stock market updates, and new catalysts, our narrative remains the same. All other news can be bullish or neutral, and that’s okay. But retail investors must understand that all other factors are simply part of the process.

This is a squeeze play. Fundamentals are out the window. At least for the most part since mainstream media still has influence over the markets.

Expect the unexpected and be open to even the greatest possibilities coming to fruition very soon.

FOMO Is About To Kick Into Overdrive

And of course, during any momentum runup you have to welcome FOMO buyers with open arms. It’s this type of momentum that will beat shorts betting against the stock.

As AMC begins to make its way up again, we’re going to experience more buyers to get in on the play; institutions included.

Short sellers have been doing quite well at suppressing FOMO but this is their fear. The psychological tactic behind their play has been to tire the retail investor out into selling their positions.

They don’t understand the community though. We are not going anywhere until every short buys back every share they owe.

FOMO could scare a waive of short sellers into closing their positions. This is why it is very important that the ape community hold their stock no matter the circumstances.

FOMO is the crowd that tramples over the staff that opens the front doors during a black Friday sale. That staff are short sellers in this narrative. They fear the crowd.

AMC Will Have More Runway To Soar

As AMC stock gets harder to borrow, I believe AMC will have more runway to soar in the days to come and moving forward. Short sellers have been losing money for almost 9 consecutive months now. Brokers have even raised their margin requirements and it seems all forces are against them.

I think it’s fair to say this play has gone long enough for these financial institutions (and regulators) to say enough is enough. And you know what? If this drags on all year I’m cool with it.

A play that drags longer would be especially good to see if every week consisted of perpetual gains. I actually wouldn’t mind this type of play. It would mean short sellers continue to bleed money while retail investors see an increase in net worth every week. Sounds good to me!

All in all, I’m all in

I feel fantastic about AMC right now. The community has learned to overcome this psychology warfare, short sellers are hanging by a thread, and AMC stock continues to show massive strength in the market.

AMC has not let off. It wants to go up. And if it weren’t for so much shorting, the stock would be in another galaxy right now.

Share this article with an ape and leave a comment below letting the community know, are you all in?

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