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The meme stock mania seems to be in full swing as the Gamestop and AMC stocks experience wild fluctuations. The social media posts by the legendary influencer Roaring Kitty, Keith Gill, have reignited the interest in the meme stocks.
Earlier this week, Roaring Kitty shared his positions in NYSE: GME on Reddit. The social media post revealed that the biggest bull on the brick and mortar gaming store’s stock was holding 5 million shares as well as 120,000 call options to buy the stock at $20.
Even though AMC stock was not mentioned in the post, the price still rallied in the pre-market hours on Monday. However, the price action reversed once the markets opened. Nevertheless, the stock remains 16.74% up on the weekly timeframe.
After a sharp rejection from the weekly high of $5.70 on Monday, NYSE: AMC has shown a good recovery in the last two days. On Wednesday, the stock was up 6.26% at press time. Nevertheless, it remained almost 9.5% below the weekly high while hovering at a critical resistance level.
The shares of the American entertainment company continue to face massive headwinds and hit their record lows in April 2024. The company’s poor financial health and massive debt burden are keeping the seasoned investors at bay.
Since hitting its all-time low of $2.38 in April, shares of AMC are up 119%. The most critical resistance level as shown in the following chart, is the $4.82 level which has been tested many times this year without a proper breakout. A reclaim of this level could make the short term AMC stock price prediction bullish.
However, the broader outlook would remain bearish until the reclaim of $10.90 resistance on the weekly timeframe. Only such a move could be considered a proper bullish reversal. Considering the current financials of AMC Entertainment Holdings, such a move seems highly unlikely. Nevertheless, an extended meme stock rally could propel the price beyond this key level in the coming months.
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