Did you listen to the video? It's in the government best interest to let it go as high as possible because of capital gains tax
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Yes I watched, and I still dont buy it. The government will not let it go that high, anyone who believes it will is delusional. And I am an AMC investor since January.
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Here's a pattern than can sometimes be a good entry, as long as the risk looks low as far as total loss. It's almost a falling wedge pattern (not sure where this fits) back to a previous breakout pivot. If the stock gaps up and then sells off back to the breakout, on lowish volume, it could be a good entry. If this sold off on high volume, then it's NEVER a good entry.

Prior high of the May/June base was 58.20 before it gapped up. It's falling back slightly below this pivot point as marked by horizontal line on graph. Entry would be buy stop market order 58.20 with stop loss 56.60 (50 day MA) for 2.7% risk. I never risk more than 4% on this type of entry as there is absolutely still possible to see more selling off. The reward here is 58.20 entry with possibly retrace back to $65 for 11% gain. 4:1 risk/reward.


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Wouldn't we want to see a small retracement at the end of that pattern?

Also , I would think to watch what it does in premarket action that should give a clue which way it will move??
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Retracement as in further down for awhile before moving back up?

Premarket is hit or miss to determining movement. The opening of the day can be more useful, however. If this sold off a few more percent to open Monday trading, I wouldn't go near it.
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No, I was thinking the last candle on the chart needs to be green , even if it's small.
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Right, but that's why I'm determining the breakout price ABOVE it's current price. My breakout price for purchase is ABOVE it's current price, so the day I enter the candle will be green as the stock moves higher from it's current price. If it never hits this price, I don't initiate anything.

It's currently trading at 57.83 and my purchase is only if it goes above 58.20. Trading is only about finding a stock with momentum up. So you're correct in that I won't purchase this until it finds that breakout. If we get another long red candle, it's definitely unlikely I'll take this trade anytime soon.
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Yep, got it , Thanks Lew!
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I wouldn't call that a wedge but that's me. What it is though is "filling the gap" which stocks have a strong tendency to do. That being said it is a good entry point.

Also from a purely technical analysis perspective your "pivot point" isn't a true pivot point. Pivot points are calculated for day trading based on the previous day's OHLC.

What you have highlighted is a classic example of resistance becoming support, assuming it holds. Again, you are right about the approach but I think your verbiage is a bit off is all.
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Looks like its blowing up premarket
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I might have to monitor that, I've seen where it goes up initially premarket then comes down some after the open. People are selling to make money off the gains, one might wait for a dip.
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All correct. The 30 minute chart makes it look more similar to a falling wedge but it’s still a stretch. Is there a name for this?

And yes, I’m being generous with pivot point too. Didn’t know how else to show/name a “change” in direction point. Trying to provide some basic guidance for these meme stock bros in here.
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Bitcoin taking an uppercut to the chin today Mike Tyson style.
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If I had to assign a pattern to it I would call it a flag because it is a fairly symmetrical pattern. I mean I guess depending on how you wanted to draw the lines it could be a wedge. But , imo, it's such a sharp pullback I would just call it a re-tracement and not overthink it too much.

I tend to not try to force a particular name to the proposed pattern because when it comes to trend line and support\resistance analysis it can all get very subjective. The important thing is to recognize a consolidation pattern in general.

But this particular chart is almost one for the text books if it holds. You have some classic teaching examples.

Breakout above resistance on the 5th attempt with high volume no less

Gap to the upside

Re-filling the gap

Returning to the resistance line which has now become support (assuming it holds)

That's a classic chart to teach many aspects of chart reading right there.
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China shut down 90% of the mining is the story this morning.
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