AMC Entertainment (AMC.US) tumbled roughly 12% during today’s session after a small research house, Iceberg, disclosed it held a short position on the theater chain operator’s stock. AMC shares plunged to levels not seen since June 11, falling below the $50 level. Iceberg noted that shares have been trading sideways in recent weeks - on the chart one can also notice that volume fell significantly as well. On one hand, one cannot deny that meme stock mania eased in recent days, which is reflected by lower volume. On the other hand, any headlines about short positions may actually challenge Reddit traders who may want to play another short squeeze.
Source: Twitter.com
Intraday lows from June 10 ($39.71) may be an important price level if the pullback continues. Source: xStation5
