The stock market has bounced back after last week’s Fed meeting as Fed’s Powell testimony from yesterday made it clear that the central bank is nowhere near hiking the rates. Moreover, Powell did not appear surprised anymore, as it was last week when the dot plot revealed two rate hikes in 2023.
As such, the stock market bounced strongly, with the main indices quickly erasing last Friday’s lows. Furthermore, the S&P500 made a new all-time high.
Given the circumstances, the meme stocks have found support as well. In the case of the AMC stock price, the market bounced from dynamic support and now looks poised to threaten horizontal resistance too.
Speaking of the pattern, it resembles an ascending triangle, with the measured move being the distance of its longest segment projected from the horizontal resistance. Effectively, it means that we should not discount a move to $100 if the market manages to close above the daily resistance.
The focus for AMC is on horizontal resistance. A daily close above is bullish and should trigger more interest on the long side from other market participants.
Bulls may want to wait for such a close before going on the long side. The invalidation level must be set at the previous higher low at $50 and the take profit at $100, as indicated by the measured move.
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