How AMC Entertainment, GameStop Stocks Look Going Into The Week Ahead

AMC Entertianment Holdings, Inc AMC and GameStop Corporation GME continued to trend in various Reddit communities over the weekend. Members of r/SuperStonk, r/amcstock and r/WallStreetBets continue to await the event they term "the mother-of-all short squeezes" (MOASS).

The statistics for both stocks were recently updated. Short interest is only reported two times per month and the most recent data is from positions as of Sept. 15.

• As per the most recent update, AMC has a 511.47-million-share float with insiders and institutions owning 25.57% of the shares available. AMC has 18.99% of its float held short.
• GameStop has 61.83 million shares available for trading. The stock has 50.33% of its shares held by insiders and institutions and 15.85% of the total float is held short.
• See Also: #CitadelScandal Trends As New Lawsuit Alleges Meme Stock Conspiracy

The AMC Chart: On Friday, AMC looked as though it was about to complete a bear trap and bust back up into a pennant pattern the stock has been trading in since May 25. AMC rejected the ascending trendline of the pattern, however, and closed the session slightly below.

The rejection of the pattern may have been due to AMC being unable to pop above the $41.78 level reached previously on Sept. 23, which created a bearish double top pattern on the daily chart. The stock may still be attempting a trend change and Friday’s action could serve as the higher low if an uptrend follows.

The bearish price action on Friday was made on big volume, with 65.91 million shares exchanging hands compared to the 10-day average of 50.89 million. AMC’s stock managed to close up 1.08% over Thursday, however, which indicates there is an ongoing battle between the bulls and the bears.

AMC is trading slightly below the eight-day and 21-day exponential moving averages, with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The stock is trading up about 60% above the 200-day simple moving average, which indicates overall sentiment remains bullish.

• Apes want to see big bullish volume come in and drive AMC’s stock back up into the pennant pattern, which would pop the stock back up over the EMAs. If AMC can regain the levels as support, it has room to trade back up toward the $43.33 mark.
• Bears want to see AMC continue to reject the pennant pattern as resistance and for big bearish volume to drop the stock down below the $35.59 level. If the stock can’t hold the level as support, it could fall toward $31.91.

GameStop fell into a third falling channel within the pennant on Sept. 20, making a series of lower highs and higher lows. If history repeats, GameStop should break up bullishly again from the pattern and on Friday tested the ascending trendline of the pennant as support and bounced.

The stock has a gap above between the $288 and $296 range. Gaps on charts fill 90% of the time, which makes it likely GameStop will trade back up into the range in the future.

GameStop is trading below the eight-day and 21-day EMAs, with the eight-day EMA trending below the 21-day. As with AMC, this indicates bearish sentiment for the short-term. The stock is trading about 21% above the 200-day SMA, which indicates overall sentiment is bullish.

• Apes want to see big bullish volume push GameStop up through a resistance level at $189.20, which would allow the stock to regain support of the EMAs. If GameStop can regain the level as support, it could break bullishly up through the pennant and rise toward the $209.85 level.
• Bears want to see big bearish volume come in to force the stock down through the bottom of the pennant formation and through a support level at $169.88. Below the level GameStop, has support at $145.22.