AMC Entertainment stock is respecting that $35-$38 level of resistance very well. Retail investors are wondering when AMC will rebound.
Some of you are HODLing gains, some of you losses.
However, something extraordinary has been happening while AMC stock has been slowly creeping down to its current price range.
The short interest has hit an all-time high. And although new shorts might be profiting on paper from AMC’s $70 decline, hedge funds who have been shorting AMC since January face apocalyptical conditions.
I mean, have you seen Kenny recently?
Welcome to Franknez.com – the blog that provides you with unfiltered information about your favorite stocks. Today we’re talking AMC and why I personally think we’re heading towards a rebound.
Let’s get started!
Last time AMC’s short interest was at 20% it jumped past $70 per share back in June. The current short interest is hovering extremely close to 21% now.
If this doesn’t have you excited it should. If history repeats itself, which usually does, this could be big.
Here’s what we can learn from the past.
Patterns Often Times Repeat Themselves
Before we moved past $50 again last month, patterns suggested that breaking specific levels of resistance would lead us there.
Breaking $32, $38, $40, etc, proved to be right.
Well now AMC has been doing incredible at respecting the mid to high $30s again like it did last month.
Community, don’t be fooled – this shows strength in the stock. Not just the stock; but in the community as well.
See, no one is getting left behind. We’ve come too far to let off the gas pedal.
The fact that we have been seeing a strong resistant level in the $30s again signals that apes continue to hold. It will be a rare instance if AMC’s share price goes below this price range.
And although we might have seen it drop a little below (maybe once or twice) last month, AMC has proven to be extremely uncomfortable below the $30 range.
This leads me to believe that we indeed have a new bottom. And compared to where it was at $5, I’d say it’s a pretty great bottom.
What Does AMC’s Short Interest Data Tell Us?
The short interest is the number or percentage of a stocks float that has yet to be covered by shorts.
This is what I like to refer as the rocket fuel. 10% short interest is considered to be high where 20% is considered to be ‘extremely high‘.
For perspective, Apple stock has less than 1% short interest.
Here’s Why This Matters
AMC topped almost 9% back in January during its first runup to $20. Then, it peaked at 20% in June when the stock price surged past $70+.
AMC’s short interest fell as low (or I should still say as high) as 14.76% in July before beginning to move up again in August and September.
October could be the month we get another massive rebound. AMC actually hit 21% short interest a few days ago and is extremely close to reaching this percentage again.
The increase in short interest percentage tells us that more short sellers have gotten in on the stock since the runup back in June.
And as long as retail investors continue to buy and hold the stock, the community can set new bottoms and run the price up again, squeezing new short sellers from their current positions.
This extremely high short interest can ignite an AMC rebound specifically because the ‘market‘ is there. The short sellers are there and the demand for AMC stock continues to increase.
So what happened is that instead of all short sellers closing their positions back in June, the few that did were replaced by new ones. This short squeeze play is nowhere close to being over and I’m excited!
Here’s What The Trading Volume Tells Us
AMC’s trading volume reached 1.2B the day it rose to $20 per share. It’s previous trading day volume was around 456M.
In June, when AMC’s share price hit $70+ dollars the volume peaked at 766M. AMC opened at $37.52 that same day on Wednesday June 2nd. Incredible right?
The trading volume before the runup ranged between 400M-700M its previous trading days.
Ladies and gentlemen, volume matters. An AMC rebound is just around the corner; however, retail would need to play more offense than defense.
AMC has the perfect setup for another massive upswing. And if you sold, sorry to break it to you but this ain’t done running up.
Theoretically speaking, retail would have to refrain from selling in order to hold new levels of resistance to further runup AMC’s share price.
Upcoming AMC Price Prediction (October-November)
AMC has peaked at $20, and it’s peaked at $70; that’s 3.5X from it’s first run. If this pattern continues, we could very well see AMC peak closer to $250 per share with some serious volume from retail.
If you’re part of the Patreon, you’ve seen me adding AMC throughout the months and know I’m making another purchase very soon. The stock is currently at a bargain for momentum traders and my conviction has only gotten stronger.
This is why buying and holding has been all the DD the community every truly needed. The volume from retail is the sleeping giant. It’s what hedge funds didn’t want you to know.
As always, thank you for reading the article. Be sure to share it with another ape.
How Long Have You Been HODLing AMC For?
Leave a comment below. How long have you been holding AMC stock for? Were you in the battle of $8.01? Or are you a new ape? Share your story with the community below 👊.
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I’m a complete newbie, got in at $46 *1000 shares so am currently about 10k down. So hopefully you are right Frank!
Got in early March and have been adding to a total of 3100 shares at a cost of 13.25.
Been buying since $6. All the way to $55. Holding 1800 shares.
Bought my first 100 shares at $16 on Jan 27th. I added all the way down and back with number 1300 locked in with a $9 avg. It’s a large retirement or a large popcorn.
100 to 1300 NICE!
10 dollars here….220 shares
Got in late at 38$. Wish I knew about the apes back in Jan. How will i know if there’s another stock to get in on? Only heard about this from my brother, read about Game Stop and got into AMC. I’m hodling! Not a lot of shares but I’m in.
Be involved with the community! Apes have made money from other plays too. AMC and GME have the biggest community though. Never stop learning 💪
My ave is $8.80/share. Been here since the beginning and will HODL to the moon.
$8.80 wow! You’re up 🚀
Great article… Still holding since late January. Averaged price up to 16 a share with 1260 shares now. Holding for at least triple digits. At the LEAST
Thanks brother – great average and share count! 🍿🦍
In since December. My average is low and I’m ready to go.
Got in late around $25, still holding my 60 shares for $1K per share.
Holding since $10. AMC to the moon!!!
Hodling 70k shares at avg. $12pps. AMC to moon!
Apes staying strong!
Holding 2000 since march–Can’t wait to go to the MOON
Been HODL since $8.01 and will continue to until all the the little Apes get what they need!!!
Love it 🦍♥💪
Yes I was in the battle of 8.01 and remember exactly where I was…having a beer and fish taco at miguels, watching the market and staring at AMC!! Baught in as low as 7 and as high as 30…and now am the proud owner of 1708 shares that are going to be life changing!!! MOASS!! Standing strong with my fellow apes!!
Standing STRONG 🦍💪
250 shares, bought end of july. Holding to 6 digits or 0$.
I am using the translator, I have been with my actions since June and I am still here firm, after having found your writings I have followed you and I have trusted your trust, and I have been buying in the drops according to my possibilities, thank you for continuing to keep us informed.
Definitely HODL fatigue since April, but hanging on to my 122 shares… I’ve never trusted a stranger more before. Don’t fail me now!
Our convictions could be very different, trust yours over anyone else’s! Happy to hear the research has been valuable 🍿🦍🚀
Love your articles. They’re kinda like a pep talk, Friday night lights, getting me pumped up when I’m feeling kinda down with this stock lol
Happy to hear you gain strength from the articles Rob. Been holding STRONG since Feb. 🍿🦍🚀
I got in at $5.75. I’ve bought at $6. $7.50. $30 & $50 and am tempted to buy more, but am going to hold for a bit and see what’s happening with the market. I’m in for the long haul!
I got in at $14, been adding to my position since it dropped to $5. I HODL with the community 🍿🦍🚀
Ich war bei 8,01 dabei
Ive had 2 friends since around April telling me to get in, but it was never too clear to me why they thought AMC stock was so great, and i saw some articles saying AMC was a bad idea, so i chose to sit it out, until i witnessed it hit $70, and thought “i really need to do some digging about this, the media has to be wrong about this”, after learning more about the short squeeze goal, i started buying in fast and heavy when it came down to the $50s, shortly after i found your blog, and im glad i did!
I’ve been averaging down ever since, i remember looking at AMC at $11 thinking “should i buy a few?”.
This is taking longer than expected, but im still confident and holding.
Thanks for sharing your story! I HODL with you and the rest of the community 💪💪💪
50 shares since february
Hell yeah, got about 40 shares myself. Holding for all of us, fook the hedge fooks 🦍🦍🦍