AMC: A top sign! What it takes for it to reverse?

27 Eki 2022

• AMC is in a resistance área made by the 21 ema and the black line at $6.80 – which was a previous support level multiple times in the past, now it is working as a resistance, following the Principle of Polarity;
• In addition, we see a top sign, as yesterday it did a Shooting Star candlestick pattern, and today it is doing another bearish candlestick;
• If AMC loses yesterday’s low it might drop again to the previous support at $5.47 (red line), resuming the bear trend;
• By losing the $5.47, the next stop would be only at $5 area;
• Could AMC avoid this scenario? Yes, if it reacts quickly and breaks the dual-resistance area made by the 21 ema/black line – preferably closing above it;
• This could reverse the trend in the short-term to the $8.15, our next resistance;
• Since we have earnings in 12 days, this could enhance the upside (or downside), depending on how the market reacts to the results.

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