On our previous article, We called AMC investors, the “New Era of Hedge Funds” and predicted that AMC would break at least $50 per share. Today, AMC’s high was about $72 a pop at the opening bell.
What’s Happening: AMC’s business model is pretty much on the verge of dying, and with a negative -$300M free cash flow, which indicates an inability to generate enough cash to support the business. The stock price has gone from $2 in January 2021 to $72 earlier this morning. This rally has been caused by retail investors who have decided to retaliate against the hedge fund investors who have shorted $AMC. They are investing because they “like the stock”.
Price Target For $AMC: We expect $AMC to open Thursday morning with close to $80 a pop and then fall off before it bounces back up. If this momentum continues, we expect AMC to cross about $100 before Friday.
How To Take Profits: Here is what we recommend, Keep a close eye on the RSI & whenever it’s on verge of crossing 70-75, sell half of your positions and buy it back when it drops. This method will allow you to cash in on the rise and have money cash to either reinvest or take your initial investment out. Keep in mind, AMC is not the company that you want to put on your retirement account, this is just a quick wave of “meme” stock. AMC doesn’t have a bright future, but that doesn’t mean you cannot make quick money out of it.
Here is a quick video on what is RSI and How to use it:
MoneyTalks on TMN Video
Disclaimer: We are not responsible for profits/losses. Trading is risky & you should do your own research.