While the broader stock markets are trading under the pressure select shares are seeing astronomical gains. AMC Entertainment shares briefly skyrocketed more than 300% in the early hours of today's trading session. On Monday, AMC CEO announced the company has been saved from bankruptcy after the company raised $917 million in financing. The cinema operator is among a number of heavily shorted stocks rallying this week, thanks to the bullish encouragement on social media. On Reddit, Facebook, and Twitter, a group of people launched “save AMC” campaigns in order to increase the price of shares along with call options — gives buyers the right to buy the stock at a set price until a certain date. This forces short-sellers into buying shares back to cover their positions, which sends prices even higher. It is an interesting lesson in the power of social media and how easily manipulated the stock market can be.
Meanwhile excitement around AMC and GameStop’s stocks caused technical problems on Robinhood, Trading 212 and other trading platforms. Trading 212, for instance, said that its service was being disrupted “due to an unprecedented increase in demand”.
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AMC (AMC.US) - early in the session stock managed to erase all of the pre-pandemic losses, recovering to levels not seen since September 2018. However buyers failed to break above the resistance at $20.34 and price is sliding towards support at $12.20 which is additionally strengthened by 200 SMA (red line). Source: xStation5
