AMC Approaching Decision Point

In the run up to the January 2021 squeeze, AMC struggled to get above the Daily (red) and Weekly (green) triggers. However, in the few days right before, those resistance points collapsed. Each trigger fell with a gap-up and accelerated price action to the upside. And each time the triggers turned from resistance into support and the next trigger fell.

AMC might be playing out the same process, though on a longer timeframe. AMC has currently bested the Daily and is creeping toward the Weekly. If upside price action is to continue, I expect a gap-up over the Weekly and a run to the Wave 3 target range, then a drop back to retest the Weekly. The craziest scenario in the short term is a run above the Monthly around $40 and a quick collapse back to the Weekly around $20. However, I think it will be more restrained and methodical with quick, unexpected breakouts until it finally conquers the Monthly.

This will almost certainly shadow GME as it squeezes over the next several months.