AMC’s short interest has gone down from 23% to 19.42% with very little noticeable change in the share price.
Shareholders are wondering why AMC’s SI has dropped and price has not risen.
After all, isn’t AMC’s share price supposed to skyrocket as the short interest goes down?
Let’s discuss it.
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Short interest drops
AMC’s short interest has dropped from 23% to 19.42% in a matter of days.
AMC Entertainment stock moved from a low of $11.60 to a high of $14.36 on the 5-day chart.
While we have officially entered a bear market, not even positive news can escape the clutches of the general market’s downtrend.
So, is it possible this very small short interest drop could have been responsible for AMC’s small climb from $11.60 to $14.36?
AMC’s shares on loan also dropped from 194 million to 163.31 million.
But should shareholders holding out for a short squeeze be worried?
After all, it’s AMC’s short interest that tells us AMC has a shot to reach a new all-time high, isn’t it?
AMC’s short interest has always fluctuated, despite being on an uptrend for months now.
If AMC’s short interest keeps falling down, then we can anticipate shorts have merely begun to close their short positions.
And as Charles Payne put it, it’s short squeeze season again.
Will AMC’s short interest keep rising?
Because AMC’s short interest tends to fluctuate, it’s very possible AMC’s short interest rises to +23% again.
This simply means more shorts are getting back in to short AMC at its current market value.
The rise in short interest is primarily independent to institutional sentiment.
We know AMC’s fundamentals have greatly improved.
Could institutions finally be getting ready to close their short positions in AMC Entertainment stock?
It wouldn’t be surprising if they were.
AMC Entertainment Holdings Inc. is no longer a screaming short.
Institutions have lost billions of dollars betting against the century old movie theatre chain for over a year now.
One of the biggest rules in trading is to never trade against the trend, and AMC is no longer a short.
Shareholders will have to keep an eye out on the reported short interest data for insight as to how much runway AMC has to rise in share price.
I update AMC’s short interest daily here straight from Ortex.
One thing is certain
AMC’s share price is destined to rise.
Whether you look at it from a fundamental standpoint or from the perspective of a short squeeze play, a reversal is imminent.
It’s merely a matter of time.
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