Tag: AMC Apes (Page 2 of 13)

Will AMC Rebound in October?

Market News: Will AMC Go up in October?
Market News: Will AMC go up in October?

AMC traded below $7 this week and shareholders are wondering whether AMC will rebound in October.

September tends to be one of the most bearish months of the year while October tends to be the complete opposite.

Even in the crypto space investors prepare for big price action.

AMC recently filed a form 8-K filing confirming it is selling up to 425 million APE shares to reduce their debt.

This fundamental strategy could also play a big role in how the stock moves this month as it steers towards the right direction.

Let’s discuss it below.

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Bullish October for AMC Entertainment Stock?

Is October a good month for stocks?

Historically, October has been a really positive month for stocks, although it has had its volatile moments.

Unusual Whales tweeted that October tends to be a “bear-market killer”, known for its historically strong returns, especially during midterm elections, per MarketWatch.

AMC Entertainment stock has tumbled all year alongside the market.

As the market reverses, we can expect AMC to follow.

Does this mean October will spark the beginning of a bull market?

Not quite, as it will take some time to see this develop.

The country is in a recession and just about every market has substantially more sellers than buyers.

October could yield a momentary bull run, but a bull market will take time to determine based on economic and buying conditions.

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Where does this leave APE?

APE Stock
APE Stock

AMC is selling up to 425 million shares of APE to pay down their debt, which means APE prices will tumble as a result of the selloff.

The company issued the following statement:

“Under the circumstances, we caution you against investing in our AMC Preferred Equity Units, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” said the official statement from AMC Entertainment.

APE gave AMC Entertainment access to a portion of shareholders’ capital without needing the approval to dilute AMC shares.

This cash cow is now available for AMC to claim in order to pay down its debt.

Is APE worth investing in?

I personally think it’s more of an investment tool for the company rather than for shareholders aiming to squeeze shorts from their positions.

But I’m curious to know your thoughts.

Leave a comment down below.

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Related: APE Topped $304.9 Million FTDs Last Month

The Cost for Hedge Funds to Short AMC Rises

Hedge Funds short AMC
Market News: The cost to short AMC stock increases

The cost for hedge funds to short AMC is rising.

Short sellers have been prophesizing the fall of the movie theatre industry after the pandemic temporarily crippled the largest movie theatre chain in the world, AMC Entertainment.

Overleveraged institutions, who many have discovered to be involved in major conflicts of interest, have been able to manipulate the company’s shares from rising through a variety of tools only accessible to financial institutions.

The demand for the movie theatre chain stock has been masked in dark pools, or other foreign exchanges; only a fraction of retail’s money has been observed on the lit exchange (NYSE).

Nonetheless, retail investors have become a massive support for the stock and the company.

So much that even as short sellers drag out getting squeezed from their positions, the cost for hedge funds to short AMC has risen.

Let’s go over the numbers.

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AMC’s CTB and short borrow interest fee increase

AMC cost to borrow

AMC’s cost to borrow (CTB) has steadily increased over the past weeks.

According to the reported short interest data provided by Ortex, AMC’s CTB is now at 17.78%.

Ortex’s cost to borrow represents the annualized % of interest on loans from brokers to their clients, i.e., hedge funds.

There are currently 196.09m AMC shares out on loan.

196m shares on loan X 17.78% (CTB) = $34.8 million in interest.

It’s costing short sellers $34.8 million per year to short AMC Entertainment.

This is the fee hedge funds are currently paying to bet against retail investors long on AMC stock.

And this is only including the shares out on loan that are recorded or reported for the public.

The total amount could be less or more.

Stonk-O-Tracker has recorded the interest rate of shares to borrow to be as high as 28.30%.

This number of course fluctuates, but interest rates struggled to move past 1% at the beginning of the year.

The rise in fees plays in retail’s favor.

Related: AMC Nears High Demand Levels: What to Watch For

Will high interest fees force hedge funds to close?

will AMC Squeeze?

High short borrow fees may play a significant role in the closing of short positions for AMC Entertainment stock.

The cost for hedge funds to short AMC will only continue to rise as the demand to borrow these shares is there.

At this point, it seems financial institutions will need to decide when they’ve had enough.

Combine big price action with increased borrow fees and you strengthen the probability of short sellers closing their positions.

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When you become involved, it’s hard to miss an opportunity.

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AMC Nears High Demand Levels: What to Watch For

AMC Bullish
Market News: AMC TA indicates bullish momentum is near

AMC Entertainment stock is nearing a major demand level as share prices continue to decline.

The stock closed at $8.58 on Thursday after hitting a low of $8.30 on the intraday chart.

Volume on Thursday fell below the average of 46.3 million by 20.9 million.

But AMC is treading a fine line as the high $8 and low $9 levels have proven in the past to be a strong support for the stock.

Breaking below $8 could send the price to test a high demand level around $6.50 per share.

In this article I’m going to explain what shareholders should look out for in the next coming weeks.

Let’s get started!

Momentum levels are on the brink of reversing

If you’ve watched one of the latest videos on my channel regarding the TTM Squeeze indicator, then you know all about the massive impact this indicator is signaling.

Watch this quick clip on YouTube – Subscribe for more content and updates.

The TTM squeeze indicator is an indicator that signals heavy buying or selling momentum.

When AMC began to run up before ultimately hitting its all-time high of $72 per share, we see this indicator was already predicting heavy bullish momentum.

TTM Squeeze indicator - AMC Stock
TTM Squeeze indicator – AMC stock

The TTM Squeeze indicator is the chart at the very bottom whereas the top is AMC’s price action.

Dark green shrinking candles indicate the stock is on the brink of losing momentum and often times serves as a sell indicator.

We see that as the dark green momentum candles shrunk, AMC’s price action is followed by a massive crash.

Now let’s take a look at what happened when the TTM Squeeze indicator switched from bullish momentum to bearish momentum.

As the indicator transitioned from bullish momentum and began to show signs of bearish momentum, we can see AMC had a drastic drop in share price.

The TTM Squeeze indicator predicts big moves ahead.

A new transition is in play

So where is AMC today?

AMC is actually in a period where bearish momentum has begun to die out, leaving room for buyers to takeover.

It makes sense as AMC’s share price is hovering just above key levels of support, which have also been known as high demand levels.

Below you’ll see the TTM Squeeze indicator shows bearish momentum has completely gone out on the weekly timeframe.

The transition from red to green momentum candles will signify big moves lie ahead for AMC Entertainment stock.

But we’ll need one or two of these weekly timeframe momentum candles to serve as confirmations.

If these candles break through, then it’s a clear indication AMC is on track for some massive price action.

Related: How to Invest in the Stock Market for Beginners

What’s on the other side of the coin?

If AMC fails to establish this momentum through buying pressure, short sellers will be able to take over once again.

AMC’s share price would further plunge, and that would be an article for another time.

But for now, the transition towards bullish momentum seems much more likely.

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AMC Shares Could Fall More Before Massive Breakout

AMC stock news today
Market News: Technical analysis shows AMC is on the brink of a breakout

A massive AMC breakout could be underway as technical analysis shows a ‘bullish wedge’ pattern forming.

The pattern may also be referred to as a ‘descending broadening wedge’ which I’ll explain in more detail down below.

Today I’ll be going over some technical analysis for AMC and walk you through the levels to keep an eye out for.

By the end of this article, you will know my analysis on approximately how low AMC may go before a bounce and breakout.

And also, proof and indication massive price action is inevitable in the coming weeks.

This is exciting.

Let’s get started!

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Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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Breaking down AMC’s levels

AMC has been setting itself up for an incredibly bullish run over the past 20 months ever since retail investors first began purchasing the stock in January of 2021.

The battle between buyers and sellers has created what’s known as a ‘descending broadening wedge’ over the long run.

This means retail investors never truly left despite what mainstream media has attempted to portray.

But when looking at the technical analysis of the pattern, we can see a massive rebound could be underway.

Retail investors will have confirmation once price hits a major level of support followed by bullish price action, indicating the start of a reversal.

How low will AMC go before a reversal?

AMC has a very strong level of support around the high $8 to low $9 range but we may even see the stock price drop as low as $6.50.

The next major retest price level is around $19.70 where we will meet a big resistance zone at $28.30, respectively.

If AMC is able to break this level, the movie theatre chain stock will retest $35.20.

Breaking $40 is the key to greater momentum beyond previous share prices.

If you’re not familiar with Trey from Trey’s Trades, he posted AMC’s technical analysis chart pattern and compared it to this descending broadening wedge pattern.

These indications tend to be extremely bullish and break upwards most of the time.

It’s very possible we see AMC breakout in the coming weeks or months.

It’s important to note that technical analysis only allows traders to identify the possible movement of a particular security.

AMC stock hit a low of $8.85 during pre-market hours on Monday and began to trend upwards during the trading day.

5 minute timeframe AMC stock
5-mintue timeframe – AMC stock

We’ll need to keep an eye out on AMC’s levels to identify whether this is the reversal from a descending wedge pattern, or whether there is still room for AMC to fall before a massive breakout.

Now I want to switch it over to the weekly timeframe and show you why big price action is actually inevitable.

On the verge of transitioning from ‘Sell’ to ‘Buy Momentum’

If you’ve watched my 3-part video series on day trading, you know that one indicator I use is the TTM Squeeze indicator.

This indicator measures buyer vs seller momentum and is a strong confirmation bias signal pointing towards big and upcoming price action.

AMC Technical Analysis

We can see that the TTM Squeeze indicator showed bullish momentum when AMC spiked to its all-time high back in June of 2021.

We then begin to see a drop in bullish momentum (green) and transition to a bearish momentum (red) indicating a big move about to happen on the downside.

Well now, the weekly timeframe is showing a possible transition from bearish momentum to bullish momentum is about to take place.

And when it does, you can bet it will confirm the descending broadening wedge pattern where a massive break may set a new all-time high for AMC Entertainment.

This is bullish news.

For more updates on AMC be sure to join the newsletter or connect with me on social media.

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