Here’s the end of that AMC ($AMC) move. – May 28, 2021AMC
AMC ( NYSE: AMC ); in the forum today at Stock Market Mentor, our premium website, I was telling people, early in the morning, it’s another day, AMC ( NYSE: AMC ) is above 30.00. But then, fairly quickly, we didn’t turn bearish but I am looking at the risk, the potential risk versus the reward, and after this breakout from here this stock, in 3-days, counting this day, 4-days it went from $15.00 to $30.00. At some point, especially on a Friday before a 3-day weekend, at some point you have got to say enough is enough. And so we see people coming to the door, going to the exits, right?
We can look at this on the intraday chart and you will see what I was looking at. Over the last few days (I’m going to expand this a little bit, I’ll keep it there) this is on the 26th, Wednesday, the stock gaps up and then at least it keeps going. It doesn’t really pull back that much, it ground around for the rest of the day giving morning traders an opportunity to lose all the money they made here, it happens every time. And then the next day, again, the stock breaks out and runs. It pulls back, kind of dances around a little bit, and then etcetera, etcetera.
So finally, BOOM, we get this big move to the upside. This was trading below 30.00 before the stock opened up, I know because I traded it. And then the stock runs up over 20 percent in the very early part of the day. And then you see, it did a complete pivot and it was on volume. So if you look at the volume, a 5-minute bar chart here, huge volume. As you will see in the morning, right when the market opens and typically at the close as well.
But here we see big volume to the upside, it looks like it’s going to the moon. And then you see this type of thing and you say, oh, okay, this was an exhaustion gap. This was like the last of the Mohicans finally buying the stock that they have been waiting to buy. This is the shorts that have been shorting the stock, finally saying, I can’t take any more, and so they are buying. And then hope spring eternal, I’m back in and then we get this for the rest of the day.
That is a way that you can spot the top. You don’t have to ride this stuff all the way down. You have to just recognize, what was the proper breakout point? It’s from right here, $15.00. What was the proper breakout point? And then where has the stock gone since then and how fast has it gone there? So you are not looking for a continuation move you are looking for a reversal move and that is what we got here.