Here’s your trade on AMC Entertainment ($AMC) – July 8, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at AMC ( NYSE: AMC ). As you probably know this was one of, what’s the dude’s name, Roaring Kitty, that crushed some short sellers a while ago. So let’s look at that today.
You can see how this beats the snot out of all the dumb people who buy something that runs up so much. I’m just telling you guys, this is not the way you want to be trading. If you are one of these guys that says, Oh, this Roaring Kitty and all that stuff, I’ve got to get in on that.
Guys, that guy is selling into this stuff, making a ton of money on you trading the hope strategy and always thinking that maybe there’s somebody dumber behind you who’s buying the stock. And that just isn’t the case. So with that said, let’s do this. We’re zooming in a little bit and I’m drawing this kind of line. The blue line here is the 200-day moving average.
That’s a key moving average that typically, if a stock is below the 200-day moving average it’s just kind of dead to me. That’s going to mean that I’m going to miss a lot of moves. But the way that I look at it is, if a stock is trading below the 200-day moving average, that just means that big institutions are not interested in buying that stock.
Because if they were, the stock wouldn’t be lower than the average price over the last 200 days, it would be higher. What’s getting my attention on this is, just today this pushed up above this key moving average. Now, it’s down below but I’m seeing this as the potential for more of a push higher.
This would be my suggestion, wait for the stock to break out, and it may not do this, so this is a possibility, wait for the stock to break out above the high of 5.73. Maybe set an alert at 5.75, and if the stock hits your alert at 5.75, then that’s a time when you want to go ahead and consider buying the stock here, but you better use a tight stop on it.
Until the stock breaks through 5.75, guys, obviously, by definition, you’ve got a 6.8 percent upside, if the stock runs up here. The way that I look at this is the potential for a much greater move than 6.8 percent, again, just the difference between here and this high, the potential for that is a lot greater once the stock breaks out above this level.
So my suggestion is, just watch it, and wait for it. If the stock comes to you, if the stock breaks out, that’s when you take the trade. But until or unless that happens, this is just another stock to watch.
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