AMC Entertainment Stock Breaks Bullish Again: Is Shib Or Doge To Thank Or This New Trading Tactic?

On Monday, AMC Entertainment Holdings, Inc AMC CEO Adam Aron announced the theater chain would begin accepting Shiba Inu SHIB/USD as a payment option within the next 60-120 days, which will even the payment playing field with Dogecoin DOGE/USD enthusiasts who will be able to pay for tickets and concessions with their favorite crypto soon.

The announcement may have set AMC stock on an upward trajectory or a new tactic of buying AMC options may be boosting the stock higher.

Retail traders, who refer to themselves as apes and hodl AMC stock, have recently begun discussions on r/amcstock regarding purchasing call contracts in order to create the volatility that may lead to the moass (mother of all short squeezes). Reddit member u/Criand may have been one of the first to introduce the idea, but the text of the post was later deleted.

The discussion includes having "silverbacks" (wealthier apes) buy call contracts near or close to the current stock price, which would then expire in the money and force institutions to provide the shares at expiry. Apes unable to afford a lot of 100 shares or more would plan to sell their contracts prior to the expiry and use the funds to purchase more shares.

AMC has become stagnant recently, trading mostly sideways between $33.74 and $44.95 since Sept. 20. On Tuesday, the stock broke up through a resistance level at $43.33, however, and if increasing bullish volume comes in to push the stock higher, AMC may be set to run north.

See Also: How to Buy AMC Stock Right Now

The AMC Chart: AMC has mostly been trading within a pennant pattern on the daily chart since reaching an all-time high of $72.62 on June 2. Although the stock has trapped both the bulls and the bears on breaks from the pattern, AMC has largely adhered to the upper descending trendline and lower ascending trendline within a tightening range.

On Nov. 12, the stock closed directly on top of the upper trendline of the pattern and on Monday printed a massive bullish Marubozu candlestick, which indicated higher prices were likely to come on Tuesday. Although the stock had a slightly lower open on the day, AMC was trading almost 3% higher by midafternoon.

AMC is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.

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• Bulls want to see bigger bullish volume come in and push AMC up above the Nov. 8 high of $45.95, which will confirm an uptrend is in the works. The stock has resistance above the level at $48.52 and $52.79.
• Bears want to see big bearish volume come in and drop AMC back down below the upper descending trendline of the pennant and through a support level at $39.07. Below the level, there is further support at $35.59.